nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2009‒01‒10
five papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Multi-Factor Policy Evaluation and Selection in the One-Sample Situation By Chen, C.M.
  2. Valoración de flujos de caja en inflación. El caso de la regulación en el Banco Mundial By Vélez-Pareja, Ignacio
  3. Desert Power: The Economics of Solar Thermal Electricity for Europe, North Africa, and the Middle East By Kevin Ummel; David Wheeler
  4. Common Guidelines for Watershed Development Projects By Government of India GOI
  5. Multiplying financing choices through capital markets By Corduneanu, Carmen; Iovu , Laura Raisa

  1. By: Chen, C.M. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Firms nowadays need to make decisions with fast information obsolesce. In this paper I deal with one class of decision problems in this situation, called the “one-sample†problems: we have finite options and one sample of the multiple criteria with which we use to evaluate those options. I develop evaluation procedures based on bootstrapping DEA (Data Envelopment Envelopment) and the related decision-making methods. This paper improves the bootstrap procedure proposed by Simar and Wilson (1998) and shows how to exploit information from bootstrap outputs for decision-making.
    Keywords: multiple criteria;bootstrap;data envelopment analysis;parametric transformation;R&D project;supplier selection
    Date: 2008–12–11
  2. By: Vélez-Pareja, Ignacio
    Abstract: We show that project evaluation should be based on free cash flows at nominal prices. We present a case where the results from the constant price method are biased upwards and there is a risk to accept bad projects. It is a widespread practice to evaluate projects at constant prices. With an example presented in the training on economic regulation of public utilities developed by the World Bank Institute we asses that methodology. We show an overvaluation of 21% when compared with the current prices methodology and using a correct Weighted Average Cost of Capital, WACC.
    Keywords: World Bank; regulatory policy for infrastructure; developing countries; project evaluation; project appraisal; firm valuation; cost of capital; cash flows; free cash flow; capital cash flow
    JEL: L51 G12 G31 K23 L94
    Date: 2005–02–24
  3. By: Kevin Ummel; David Wheeler
    Abstract: A climate crisis is inevitable unless developing countries limit carbon emissions from the power sector in the near future. This will happen only if the costs of lowcarbon power production become competitive with fossil fuel power. We focus on a leading candidate for investment: solar thermal or concentrating solar power (CSP), a commercially available technology that uses direct sunlight and mirrors to boil water and drive conventional steam turbines. Solar thermal power production in North Africa and the Middle East could provide enough power to Europe to meet the needs of 35 million people by 2020. We compute the subsidies needed to bring CSP to financial parity with fossil-fuel alternatives. We conclude that large-scale deployment of CSP is attainable with subsidy levels that are modest, given the planetary stakes. By the end of the program, unsubsidized CSP projects are likely to be competitive with coal- and gasbased power production in Europe. The question is not whether CSP is feasible but whether programs using CSP technology will be operational in time to prevent catastrophic climate change. For such programs to spur the clean energy revolution, efforts to arrange financing should begin right away, with site acquisition and construction to follow within a year.
    Keywords: Solar energy, Africa, climate change, energy technology
    Date: 2008–12
  4. By: Government of India GOI
    Abstract: This is an initiative by the Planning Commission to formulate “Common Guidelines for Watershed Development Projects in order to have a unified perspective by all ministries.These guidelines are therefore applicable to all watershed development projects in all Departments / Ministries of Government of India concerned with Watershed Development Projects.
    Keywords: watershed, develoment, ministries, India, government, institutions, programme, livelihood, cluster approach, forest departments
    Date: 2008
  5. By: Corduneanu, Carmen; Iovu , Laura Raisa
    Abstract: Considerable evidence shows that countries with the most developed financial sectors and capital markets enjoy the strongest economic growth over the long run. The non-financial sector, small and medium sized entities can access a wider availability of more innovative and lower cost finance to aid their growth, while larger companies profit from an overall reduction in the cost of capital and a wider range of financial products. These economical agents in search of alternatives for financing their projects demand the greatest level of flexibility regarding the use of the financing instruments available and this flexibility can determine the success or failure of such a project. Capital markets also facilitate the efficient allocation of savings to where it is most productive. They allow large numbers of investors to reduce their financial risks through diversification. By spreading risk widely, they also cushion the economy against economic and financial shocks.
    Keywords: capital market; financial innovation; flexible financing decisions
    JEL: G32 G20
    Date: 2008

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