nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2010‒07‒17
five papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Critical Evaluation of Cross-Border Infrastructure Projects in Asia By Fujimura, Manabu; Adhikari, Ramesh
  2. Evaluating the occurrence and disappearance of real options By Michi Nishihara
  3. EU Cohesion Aid to Spain: a data set Part I: 2000-06 Planning Period By Angel de la Fuente
  4. Scientific excellence and extramural research grants: Beggars can't be choosers? By Grimpe, Christoph
  5. Merchant Electricity Transmission Expansion: A European Case Study By Tarjei Kristiansen; Juan Rosellón

  1. By: Fujimura, Manabu (Asian Development Bank Institute); Adhikari, Ramesh (Asian Development Bank Institute)
    Abstract: This paper attempts to fill gaps faced by policymakers and practitioners in the evaluation of cross-border infrastructure projects. It first defines what constitutes cross-border infrastructure projects, and then outlines an analytical framework and criteria to evaluate them. The criteria identify additionalities and externalities specific to cross-border infrastructure projects that need to be stressed in covering broader and indirect impacts that are not usually captured in the analysis of national projects. Then the paper examines to what extent the defined criteria are applicable in evaluating recent cross-border infrastructure projects. It also reports on emerging impacts patterns evidenced in relevant studies. The paper draws lessons and implications for design and implementation of cross-border infrastructure projects.
    Keywords: asian infrastructure projects design implementation; asian trade costs; economic analysis infrastructure projects
    JEL: H41 O22
    Date: 2010–07–06
  2. By: Michi Nishihara (Graduate School of Economics, Osaka University)
    Abstract: This paper investigates the decision-making of a firm that has an option to invest in a single project among multiple alternatives. This type of option is called a maxoption, and the nature of a max-option has been investigated in several papers. I extend the previous analysis to a model that allows the random occurrence and disappearance of alternative projects in which to invest. The occurrence and disappearance of opportunities in which to invest will be caused by changes in regulation, the exit and entry of rival firms, technological innovation, political risk, catastrophes, etc. For example, the model applies to land development with an alternative land use choice under uncertainty about changes in zoning and development regulations. I show the properties of the exercise region and the value function for the option. Specifically, I demonstrate that the prospective future occurrence of an alternative has the significant effect of increasing the option value and deferring the investment decision.
    Keywords: real option, max-option, exercise region, regulatory risk, Poisson arrival.
    JEL: C61 G13 G31
    Date: 2010–07
  3. By: Angel de la Fuente
    Abstract: In this paper we construct a data set on EU cohesion aid to Spain during the planning period 2000- 06. The data are disaggregated by region, year and function and attempt to approximate the timing of actual executed expenditure on assisted projects.
    Keywords: Structural Funds, EU Cohesion policy
    JEL: R58
    Date: 2010–06
  4. By: Grimpe, Christoph
    Abstract: Several reviews and impact assessment studies have concluded that the Sixth Framework Programme for Research and Technological Development (FP6) succeeded in fostering scientific excellence and attracting the 'A Team' in public science. However, these studies typically fail to contrast their findings with the variety of funding opportunities available to public science. Based on a sample of more than 1,000 scientists at universities and public research institutes in Germany, this paper finds that highly credentialed faculty typically chose other funding opportunities than FP6, for example grants from science foundations or industry. In fact, FP6 only seems to be attractive for the scientific 'B Team' that works rather application oriented. The findings further indicate that an FP6 participation substitutes for other grant programmes while the latter are complementary to each other. If this is intended to be changed other funding priorities will be required, for example smaller team sizes, less predefined research topics, a reduced administrative burden, and a higher quality of the peer review system. --
    Keywords: Research funding,scientist productivity,Sixth Framework Programme
    JEL: L13 O31
    Date: 2010
  5. By: Tarjei Kristiansen; Juan Rosellón
    Abstract: We apply a merchant transmission model to the trilateral market coupling (TLC) arrangement among the Netherlands, Belgium and France as a generic example, and note that it can be applied to any general market splitting or coupling of Europe's different national power markets. In this merchant framework; the system operator allocates financial transmission rights (FTRs) to investors in transmission expansion based upon their preferences, and revenue adequacy. The independent system operator (ISO) preserves some proxy FTRs to deal with potential negative externalities due to an expansion project. This scheme proves to be capable in providing incentives for investment in transmission expansion projects within TLC areas.
    Keywords: transmission expansion, trilateral market coupling, Europe, financial transmission rights, congestion management
    JEL: L51 L91 L94 Q40
    Date: 2010

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