nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2017‒12‒18
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Urban sprawl and local fiscal burden: analysing the Spanish case By Junxue Jia; Cong Qin; Yongzheng Liu
  2. How vertical relationships and external funding affect investment efficiency and timing? By Dimitrios Zormpas
  3. An Economic and Stakeholder Analysis for the Design of IPP Contracts for Wind Farms By Sener Salci; Glenn Jenkins
  4. Strategie, pubbliche e private, in azione per ri-costruire meglio. Analisi dei testi di quattro interviste By Pasquale Pavone; Margherita Russo
  5. The role of enterprise modeling in digital transformation : an exploratory study By Hafsi Mouaad; Saïd Assar

  1. By: Junxue Jia (School of Finance, China Financial Policy Research Center, Renmin University of China); Cong Qin (School of Finance, China Financial Policy Research Center, Renmin University of China); Yongzheng Liu (School of Finance, China Financial Policy Research Center, Renmin University of China)
    Abstract: Using a unique dataset for 2,190 Chinese villages, this paper evaluates the poverty-reducing effect of large scale village-based anti-poverty development projects in rural China. We find that these projects significantly increase village net income per capita and thus reduce rural poverty. We also highlight the importance of funding methods, matching requirements, and political institutions for project effectiveness. Specifically, compared to projects funded by unconditional grants, microfinance projects exhibit a stronger poverty-reducing effect; matching requirements enhance the effectiveness of the projects; and a more democratic political environment improves project performance.
    Date: 2017–12
  2. By: Dimitrios Zormpas
    Abstract: In this paper we consider a potential investor who contemplates entering an uncertain new market under two conditions: i) a prerequisite for the project to take place is the purchase of a discrete input from an upstream firm with market power and ii) the completion of the investment is conditional on the participation of an investment partner who is willing to bear some of the investment cost receiving compensation in return. Using the real option approach, we find that the involvement of any of the two alien agents causes the postponement of the completion of the investment and we discuss how these timing discrepancies are reflected on the value of the option to invest in the project. We next analyze the synchronous effect of outsourcing and external funding both in a non-cooperative and in a cooperative (Nash bargaining solution) game-theoretic setting and we show how the endogeneity of the sunk investment cost affects the timing and the value of the option to invest in projects characterized by uncertainty and irreversibility.
    JEL: C61 D92 G30
    Date: 2017–11–18
  3. By: Sener Salci (Department of Economics, Queen’s University, Kingston, ON, Canada); Glenn Jenkins (Department of Economics, Queen's University, Kingston, Ontario K7L 3N6, Canada)
    Abstract: In this paper, we undertake an integrated financial, economic, stakeholder analysis of a grid-connected onshore wind project that is owned and operated by an independent power producer (IPP) in Santiago Island, Cape Verde. This IPP project has received considerable positive publicity and has won many awards. Cape Verde has a very good wind resource, but due to its location it suffers from high transportation costs for petroleum fuels. Hence, it would appear to be an ideal site for an IPP investment in a wind farm. This analysis is conducted from the perspectives of the electric utility, the country’s economy, the government and the private sector investor. The key question is whether the design of the power purchase agreement (PPA) can simultaneously yield a high enough cash flow for the project to be bankable, while at the same time yielding a positive net financial and economic present value to the electric utility and the country respectively. The analysis in this paper shows the negotiated PPA results in a negative outcome for the economy of Cape Verde in almost all circumstances. In contrast, the owners of the IPP are guaranteed under all circumstances a very substantial return for their modest investment.
    Keywords: : electricity, wind power, power purchase agreement, public–private partnership, Santiago Island (Cape Verde)
    JEL: D61 L94 O55 Q28 Q42
    Date: 2016
  4. By: Pasquale Pavone; Margherita Russo
    Abstract: In this paper we present the methodology and results of the automatic analysis of the transcripts of the interviews carried out under the project "ideas and projects for better reconstruction" (Esposito et al., 2017). Four strategic areas are considered: the Territorial Cohesion Agency, the Casa Italia Plan, the Civil Protection, and that of a community model of action in the community. The goal is twofold. On the one hand, it is intended to offer a systematic reading of the specificities and elements common to the various aspects considered in the interviews. On the other hand, we want to explore some methodological ideas in the automatic analysis of the texts on the following issues: integration of analytical tools, constraints resulting from the size of the corpus, interpretative potential of graphical representation of results, integration between automatic information retrieval, auto-coding of a corpus and expert reading.
    Keywords: automatic information retrieval, content analysis
    JEL: C81 C88 R58
    Date: 2017–08
  5. By: Hafsi Mouaad (DSI - Département Systèmes d'Information - TEM - Télécom Ecole de Management - Institut Mines-Télécom [Paris]); Saïd Assar (DSI - Département Systèmes d'Information - TEM - Télécom Ecole de Management - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologie, Economie et Management - UEVE - Université d'Évry-Val-d'Essonne - Grenoble École de Management (GEM) - TEM - Télécom Ecole de Management)
    Abstract: Digital transformation (DT) is a challenging issue for all companies and organizations whatever different is their business environments. DT is about business process, customer experience and business models; it relies on strong and lasting digital capabilities. Conducting DT projects in companies requires the evolution of existing information systems (IS). As Enterprise Modeling is an essential tool for managing the evolution of IS, we hypothesize that it can play an active role in guiding DT endeavors. The goal of this paper is to investigate this proposal through a case study conducted in a large financial firm. The study shows the essential role Enterprise Modeling plays in identifying the most important and relevant places to make changes in the IS in order to accommodate the ongoing DT in the company.
    Abstract: La transformation numérique est un enjeu incontournable qui se joue dans des environnements très différents et au travers de problématiques extrêmement variées pour les entreprises. En effet le numérique envahit la société et l'économie à un rythme accéléré, les canaux numérique se multiplient et leurs usages montent en puissance auprès des clients finaux, cela amène des bouleversements dans les modèles opérationnels, les modèles économiques avec parfois des impacts très importants sur toute la chaine de valeurs. De ce fait, les besoins d'évolutions partielles du système d'information sont fréquents et la gestion de la transformation numérique doit dorénavant être considérée comme une caractéristique permanente du système d'information. La transformation constante des métiers et des techniques en a complexifié la gestion. Dans cette optique, il est nécessaire de se doter de méthodes et d'outils formels spécifiquement adaptés aux différents métiers de l'entreprise et servant de support à l'ingénierie du système d'information. Dans ce cadre, cet article a pour but d'attirer l'attention sur le rôle de la modélisation d'entreprise (EM) en tant que support des prises de décision. L'objectif n'est pas de définir une méthodologie de pilotage de transformation numérique mais bien d'explorer le rôle de l'EM dans la conduite de la transformation numérique.
    Keywords: Digital transformation,Enterprise modeling,IS urbanization,Digital strategy,Enterprise strategy,Transformation numérique,Modélisation d'entreprise,Urbanisme SI,Stratégie numérique,Stratégie d'entreprise
    Date: 2017–05–17

This nep-ppm issue is ©2017 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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.