Project analysis involves estimating and comparing the beneficial effects of an investment with its costs. Such a comparison is donewithin a broader economic framework that provides the basis on which full costs and benefits are identified and valued. Project analysis originated more than fifty years ago, the main ideas developing simultaneously in different places. The last thirty or so has witnessed an extensive application of project analysis methods, particularly in developing countries. This introductory chapter provides a brief outline of the basic ideas of project analysis, and the way in which their application has developed. These basic ideas are also situated in the broader process of project planning.
KeywordsShadow Price Productive Effect Competitive Equilibrium Shadow Prex Domestic Price
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