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Relevant Aspects of Public Investments Valuation

Author

Listed:
  • Iloiu Mirela

    (University of Petrosani, Romania)

  • Iloiu Sorin
  • Csiminga Diana

    (University of Petrosani, Romania)

Abstract

Recent developments, such as privatization and the private finance initiative, have raised the issue of which assets should be owned by the public sector and whether assets have different values in the public and private sector. In order to answer to this question we make here a parallel between public and private investment under considerations such investment appraisal, valuation criteria, cost of capital and the required rate of return , as well as the risk associated to public-sector investments. Finally we offer an example that highlights some of the considerations presented below.

Suggested Citation

  • Iloiu Mirela & Iloiu Sorin & Csiminga Diana, 2011. "Relevant Aspects of Public Investments Valuation," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(3), pages 131-138.
    • Handle: RePEc:pet:annals:v:11:y:2011:i:3:p:131-138
    as

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    References listed on IDEAS

    as
    1. Kenneth J. Arrow & Robert C. Lind, 1974. "Uncertainty and the Evaluation of Public Investment Decisions," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 3, pages 54-75, Palgrave Macmillan.
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    More about this item

    Keywords

    investment project; property; public sector; private sector; cost of capital; costs; benefits; risk; assets; taxes; cash flow;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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