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Cost Recovery: An Investment Perspective

  • D. N. M. Starkie
Part of the Developments in Transport Studies book series (DITS, volume 4)

Abstract

A point frequently made and one that was raised during the 1979 Seminar on transport cost recovery, is that financial cost recovery and economic efficiency are uneasy bed fellows. The reason for this is that economic efficiency requires prices to be set equal to the costs of the marginal unit consumed. However, such an equality will result in an accounting loss if the industry in question is a decreasing cost industry (because of economies of scale) or an industry which is operating at less than full capacity because of technical indivisibilities in the production process (see Annex).

Keywords

Cost Recovery Service Capacity Regional Road Highway Capacity Manual Road Track 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Martinus Nijhoff Publishers, The Hague 1982

Authors and Affiliations

  • D. N. M. Starkie

There are no affiliations available

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