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on Project, Program and Portfolio Management |
| By: | Marzia Raybaudi; Martin Sola; Shasikanta Naindebam |
| Abstract: | This paper addresses the e¤ects for partial equilibrium models of relaxing one of the critical underlying assumptions of the textbook approach (Dixit and Pyndick, 1994) to investment under uncertainty: either the potential investor has access to a single project or she can consider competing (or complementary) projects independently. This paper studies the investment decision of a multi-product monopolist where the projects exhibit interdepen- dence between the cash ‡ows of di¤erent products. We derive the optimal entry time for each product and show that both the choice and timing of investment is di¤erent from that suggested by the textbook approach. The decision to produce related goods simultaneously or sequentially crucially depends on their degree of substitutability or complementarity. |
| JEL: | D21 D24 D42 D81 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:udt:wpecon:2010-07&r=ppm |
| By: | Bhattacharyay, Biswa (Asian Development Bank Institute) |
| Abstract: | Asia faces very large infrastructure funding demands, estimated at around US$750 billion per year for energy, transport, telecommunications, water, and sanitation during 2010-2020 (ADB/ADBI 2009). Asia has large savings, significant international reserves, and rapid accumulations of funds that could be utilized for meeting these infrastructure investment needs, but Asian markets have failed to use available resources to channel funding into highly needed infrastructure projects. This paper explores issues and challenges in financing infrastructure for seamless Asian infrastructure connectivity and for other high priority development financing needs, and seeks methods and instruments to help direct Asian and international resources to cost-effectively and efficiently support infrastructure and other development needs. The paper discusses three important topics: First, what are the lessons for Asia from the European Union's experience of developing and integrating financial markets and using development banking institutions to support infrastructure investment? Second, how can Asian public and private resources, such as pension funds, social security funds, sovereign wealth funds, and private portfolio funds contribute to infrastructure development across Asia? Third, can Islamic financial markets provide funds for Asian infrastructure development? Finally, the paper makes recommendations regarding financing options and how Asian financial markets and infrastructure companies could be further developed and integrated to mobilize Asian and other regions' savings for financing priority infrastructure projects in the region. |
| Keywords: | asian financial markets; asian infrastructure; asian infrastructure financing |
| JEL: | G10 G20 |
| Date: | 2010–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0229&r=ppm |
| By: | Alessandro Fedele (University of Brescia); Paolo M. Panteghini (University of Brescia and CESifo); Sergio Vergalli (University of Brescia and FEEM) |
| Abstract: | In this paper we apply a real-option model to study the effects of tax rate uncertainty on a firm's decisions. In doing so, we depart from the relevant literature, which focuses on fully equity-financed investment projects. By letting a representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially mitigate the effect of tax rate uncertainty on investment timing. |
| Keywords: | Capital Levy, Corporate Taxation, Default Risk, Real Options |
| JEL: | H2 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2010.68&r=ppm |
| By: | Roxana Gutiérrez-Romero |
| Abstract: | The Kenyan Constituency Development Fund (CDF) aims to alleviate poverty by allocating resources to constituencies which MPs and residents decide how to spend. In this paper we assess whether MPs’ re-election chances were affected by their management of the CDF. For this purpose we analyse the type of projects implemented by the CDF and residents’ opinion about their MP and the CDF. We find that MPs’ re-election chances were influenced by MPs’ ethnicity and by the way MPs allocated the CDF. MPs who run the most projects on education and the least on other projects such as health or water were less likely to be re-elected. |
| Keywords: | Decentralization, Accountability, Elections, Africa, Kenya |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:10-09&r=ppm |
| By: | Albert van Zyl |
| Abstract: | This brief will argue that Constituency Development Funds (CDFs) have a negative impact on accountability and service delivery that most poor countries can ill afford. The risks associated with CDFs should be taken more seriously by governments, donors, CSOs, and other actors involved in the development process. They should actively discourage their adoption in countries where CDFs are being considered and promote other options for strengthening legislatures and improving local project delivery that could be more effective. [Policy Brief No.10] |
| Keywords: | CDFs, poor countries, accountability, donors, constituency, development, governemnts, project delivery, CSO, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2644&r=ppm |