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The Appropriate Benefit-Cost Ratio for Public Spending

In: Efficiency, Equality and Public Policy

Author

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  • Yew-Kwang Ng

    (Monash University)

Abstract

The optimal level of public spending is related to what public spending/projects are regarded as appropriate. This is in turn related to the benefit-cost ratio used to assess public projects. The use of a benefit-cost ratio more stringent (i.e. larger) than one would generally lead to a smaller level of public spending. Recently, some prominent economists have expressed apparently rather contrasting views on this issue. This chapter reconciles and qualifies their arguments.

Suggested Citation

  • Yew-Kwang Ng, 2000. "The Appropriate Benefit-Cost Ratio for Public Spending," Palgrave Macmillan Books, in: Efficiency, Equality and Public Policy, chapter 9, pages 124-134, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-333-99277-7_9
    DOI: 10.1057/9780333992777_9
    as

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