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What Are Left Underestimated Using Cost-Benefit Analysis For Public Project Evaluation?

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  • Jurgita Baranauskiene
  • Valdemaras Makutenas
  • Albina Novosinskiene

Abstract

Public projects don’t generate enough income to be financially justified, but create social benefits. Every project should be evaluated in order to make the investment decision. The cost-benefit analysis is a common method for public project evaluation, but this method does not fully comply with the basic concept of public projects. This theoretical and empirical research disclosed limitations of the cost-benefit analysis, used for public projects evaluation and identified the problem field for improving the cost-benefit analysis or creating new methods for public project evaluation.

Suggested Citation

  • Jurgita Baranauskiene & Valdemaras Makutenas & Albina Novosinskiene, 2014. "What Are Left Underestimated Using Cost-Benefit Analysis For Public Project Evaluation?," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 856-867.
    • Handle: RePEc:isp:journl:v:8:y:2014:i:1:p:856-867
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    References listed on IDEAS

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    More about this item

    Keywords

    investment; public project; social benefits; cost-benefit analysis;
    All these keywords.

    JEL classification:

    • A - General Economics and Teaching

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