nep-ppm New Economics Papers
on Project and Portfolio Management
Issue of 2006‒11‒12
six papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. A scatter search procedure for maximizing the net present value of a project under renewable resource constraints By M. VANHOUCKE
  2. Cost-benefit analysis and EU cohesion policy By Andrea MAIRATE; Francesco ANGELINI
  3. Investor-to-State Dispute Settlement in Infrastructure Projects By Catriona Paterson
  4. Dynamic Contracting for Development Aid Projects. Mechanism Design and High Performance Computation By Rashid, Salim; Shorish, Jamsheed; Sobh, Nahil
  5. Precios hedónicos para valoración de atributos de viviendas sociales en la Región Metropolitana de Santiago By Quiroga, Bernardo F.
  6. Regional welfare weights By Erhun KULA

    Abstract: In this paper, we present a meta-heuristic algorithm for the well-known resource-constrained project scheduling problem with discounted cash flows. This optimization procedure maximizes the net present value of project subject to the precedence and renewable resource constraints. The problem is known to be NP-hard. We investigate the use of a enhanced bi-directional generation scheme and a recursive forward/backward improvement method and embed them in a meta-heuristic scatter search framework. We generate a large dataset of project instances under a controlled design and report detailed computational results. The solutions and project instances can be downloaded from a website in order to facilitate comparison with future research attempts.
    Keywords: Resource-constrained project scheduling; Net present value; Scatter search
    Date: 2006–10
  2. By: Andrea MAIRATE; Francesco ANGELINI
    Abstract: In the context of scarce EU budgetary resources and strained public finances, cost-benefit analysis (CBA) plays a crucial role in assisting policymakers’ public investment decisions. The purpose of this paper is to draw lessons from the CBA experience under the Structural and Cohesion Funds to date. The paper reviews the main developments over the last decade, highlighting the role played by the Commission in helping foster a sound project appraisal culture in the member states. It also points out the relevance of CBA in assisting the allocation of EU funds across projects. Particularly, it is shown how the new method that will be used to determine the level of Community assistance should prevent the crowding out of other sources of finance by increasing the leverage effect and creating incentives for attracting private capital. Finally, the paper will discuss the main policy implications in terms of affordability and sustainability issues.
    Keywords: Cost-Benefit Analysis, Project Evaluation, Structural Funds, European Regional Policy
    JEL: D61 H43 R58
    Date: 2006–11
  3. By: Catriona Paterson
    Abstract: This paper was prepared in the context of the Investment Committee’s project on International Investor Participation in Infrastructure. It summarises information available in the public domain about investor-state dispute settlements in the infrastructure sectors. The document as a factual survey, however, does not necessarily reflect the views of the OECD or those of its Member governments. It cannot be construed as prejudging ongoing or future negotiations or disputes pertaining to international investment agreements. The purpose of the paper is to provide an indication of some of the challenges to international investor participation in infrastructure that have in the past led to the breakdown of working relationships between public and private partners. This paper was prepared by Catriona Paterson, a Consultant in the OECD Investment Division.
    Date: 2006–03
  4. By: Rashid, Salim (Department of Economics, University of Illinois at Urbana-Champaign); Shorish, Jamsheed (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria); Sobh, Nahil (National Center for Supercomputing Applications, University of Illinois at Urbana-Champaign)
    Abstract: Developing economies share both microeconomic and macroeconomic characteristics which are often unique relative to their more developed counterparts. Indeed, many authors (e.g. Parente and Prescott 2000) have emphasized the role of institutional frictions within developing nations as a major determinant of economic growth (or the lack thereof). We examine one type of institutional friction, concerning the observation and reporting of information, and construct a straightforward dynamic contracting model of foreign donor investment in an aid project. We show that even within a simple class of such models, the dynamic contracting problem rapidly becomes computationally intensive, yet remains manageable when high performance. We argue that the natural modeling, simulation and testing environment to both analyze development aid issues and help generate effective aid policy should involve–indeed, rely upon–high performance computational resources.
    Keywords: Development aid, Dynamic contracts, Computation
    JEL: G20 C63 D86
    Date: 2006–11
  5. By: Quiroga, Bernardo F.
    Abstract: In this paper, an hedonic pricing model is used to measure non-market attribute valuation in Social Housing Programs in Santiago de Chile. Implicit marginal prices are calculated as first stage Rosen estimates for attributes such as distance to different services, number of rooms of each type, and availability of warm water and connection to the sewage network. Distance implicit prices were calculated as the difference between coefficients of dummy variables which measured different distance levels. Results reveal non-linearity in the value of distances. Also, the number of rooms (especially bathrooms), as well as access to warm water and sewage system were highly valued.
    Keywords: hedonic modeling; social housing programs; attribute valuation.
    JEL: I38 H42 R21
    Date: 2005–12
  6. By: Erhun KULA
    Abstract: Pareto welfare criterion based on people’s willingness to pay for a project’s output is regarded by many as a narrow interpretation of improvement in social well-being. A broader opinion is that even though poorer individuals may be less able to pay for a particular benefit, they may obtain greater utility from it. In line with the broader opinion, this paper looks at country based welfare weights in the European Union with a special emphasis on relatively poor countries who became members recently. Welfare weights now have a high policy profile in the European Union in relation to distribution of funds between member and member to be countries. They can also be used in cost-benefit analysis to give priority to infrastructure projects in underprivileged areas
    Keywords: Cost-Benefit Analysis, Regional welfare weights, Income Distribution, EU Structural Funds
    JEL: D61 D70 R10 R50
    Date: 2006–10

This nep-ppm issue is ©2006 by Arvi Kuura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.