nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2022‒11‒28
seven papers chosen by
Arvi Kuura
Tartu Ülikool

  1. The discounting premium puzzle: survey evidence from professional economists By Christian Gollier; Frederick van der Ploeg; Jiakun Zheng
  2. Aid and child health Local effects of aid on stunting in Malawi By Durevall, Dick; Isaksson, Ann-Sofie
  3. Urban Regeneration Projects and Crime: Evidence from Glasgow By Daniel Borbely; Gennaro Rossi
  4. Reigniting Growth Through Innovation: Challenges and Answers By Kuusi, Tero; Ali-Yrkkö, Jyrki; Helanummi-Cole, Heli; Koski, Heli; Kovalainen, Anne; Kässi, Otto; Poutanen, Seppo; Valmari, Nelli
  5. Working Paper 08-21 - Bon vent: setting sail for a climate neutral Belgian energy system – Future Belgian offshore wind unravelled By Danielle Devogelaer; Dominique Gusbin
  6. 2021 Cold Recycling Pilot Projects: Construction and Quality Control By Louw, Stephanus; Jones, David
  7. Comparing Crowdfunding Mechanisms: Introducing the Generalized Moulin-Shenker Mechanism By Andrej Woerner; Sander Onderstal; Arthur Schram

  1. By: Christian Gollier; Frederick van der Ploeg; Jiakun Zheng
    Abstract: We survey the attitude towards the risk-adjustment of efficient discount rates among the economics profession. Three-fourth of our respondents recommend adjusting discount rates to the risk profile of the project under scrutiny, in clear opposition to the standard practice of using a single discount rate in most public administrations around the world. For example, on average, respondents recommend using a larger discount rate for railway infrastructures than for hospitals and climate mitigation. We also observe that the degree of discounting discrimination between obviously different risk profiles remains rather limited in our sample. This generates a “discounting premium puzzle”: economic experts want to penalize risky public projects much less than financial markets do for private investments. Finally, among experts supporting a single discount rate, there is no consensus about whether it should be based on the average cost of capital in the economy, the sovereign borrowing cost, or the Ramsey rule, yielding disagreement on its level.
    Date: 2022–06–30
  2. By: Durevall, Dick (Department of Economics, School of Business, Economics and Law, Göteborg University); Isaksson, Ann-Sofie (The Research Institute of Industrial Economics)
    Abstract: Motivated by a recent setback in the fight against child malnutrition, this study explores whether aid projects help to reduce stunting, or impaired growth, among children in the local area. Focusing on Malawi, a country with very high stunting prevalence and for which we have access to geo-referenced data on aid projects from a broad range of donors, we geographically match spatial data on 778 aid project sites of 22 different donors with anthropometric and background data on 26,604 children under the age of 5. To identify the effect of aid, we rely on spatial and temporal variation in aid project coverage and survey rollout, coupled with variation in childbirth years in relation to project start. The empirical results consistently indicate a positive impact of early life aid exposure on child growth. The positive treatment effect materializes already for children born in the early project implementation phase and lasts for children born up to 3 years after project start and is seemingly driven primarily by multilateral aid and projects focusing on rural development, vulnerability, infrastructure, and education.
    Keywords: Aid; stunting; malnutrition; child health; Malawi; Africa
    JEL: F35 I15 O12 O15
    Date: 2022–11
  3. By: Daniel Borbely (Economics Group, School of Business, University of Dundee, Dundee, UK); Gennaro Rossi (Department of Economics, University of Sheffield, 9 Mappin Str, Sheffield S1 4DT, UK)
    Abstract: This study investigates the effects of urban regeneration on crime, leveraging recent large-scale regeneration projects – called Transformational Regeneration Areas (TRAs) – in Glasgow, Scotland. We employ a difference-in-differences approach that makes use of variation in both the timing of TRA implementation, and in proximity to these areas to measure exposure to urban regeneration projects. Our findings are consistent with changing neighbourhood composition and the elimination of physical spaces that harbour criminal activity driving local crime reductions. We find a large and significant reduction in crime within 400 metres of TRAs but this effect fades as we move further away. Simultaneously, we find no evidence of city-wide reductions in crime after urban regeneration.
    Keywords: Crime, Housing, Spatial Spillovers, Urban Regeneration
    JEL: I38 R20 K42
    Date: 2022–11
  4. By: Kuusi, Tero; Ali-Yrkkö, Jyrki; Helanummi-Cole, Heli; Koski, Heli; Kovalainen, Anne; Kässi, Otto; Poutanen, Seppo; Valmari, Nelli
    Abstract: Abstract The Reigniting growth through innovation project, funded by Business Finland between 2020 and 2022, addressed the key challenges to the current growth paradigm and searched for novel policy levers to increase the effectiveness of innovation in a landscape of global turmoil following the pandemic. In this article, we summarize the key findings of this project, which focused on three innovation challenges and the design of policies that can help mitigate the problems that arise. The first challenge is the recent slowdown in the creation and adoption of new breakthrough ideas in innovation and the barriers to knowledge adoption. The second challenge is to maintain innovation and flexibility in production while companies increasingly outsource their core activities beyond traditional company boundaries. The third challenge is how to support creative destruction and structural change while avoiding considerable friction in the movement of resources between old and new companies.
    Keywords: Productivity, Innovations, Competition, Outsourcing, Platform companies, Creative destruction
    JEL: D22 D24 D43 O32 O38
    Date: 2022–11–09
  5. By: Danielle Devogelaer; Dominique Gusbin
    Abstract: This paper examines what role offshore wind can play in helping Belgium achieve climate neutrality by 2050. The Belgian Exclusive Economic Zone is limited and its exploitation for energy purposes cannot be extended indefinitely. Therefore, this paper looks at the development of joint hybrid offshore wind projects that both provide renewable energy capacity and can serve as interconnectors linking different countries. Two scenarios are defined and studied. They differ in the level of ambition for these hybrid hubs and the necessary electricity supply for a de-fossilised Belgian economy.
    Keywords: Electricity, Electricity demand, Hydrogen, Renewable energy sources, Long-term energy projections, Energy modelling, energy transition
    JEL: C61 L94 Q41 Q42
    Date: 2021–10–18
  6. By: Louw, Stephanus; Jones, David
    Abstract: The construction of three partial-depth recycling (PDR) pilot projects was monitored in late 2021. These studies focused on the benefits of adding supplemental aggregates to PDR materials, comparison of emulsified asphalt (EA) and foamed asphalt (FA) recycling agents in PDR applications, comparison of the gradations produced by single- and multi-unit recycling trains, and the effect of recycling train forward speed on gradation. Initial findings from the study can be summarized as follows:• Statistical analyses of quality control results on in-place recycling projects are challenging given the variability in materials and pavement structure along the length of the project. The problem is intensified on pilot projects with multiple experimental sections on which performance is being compared.• Supplemental aggregates can be used to reliably increase the density and strength of PDR layers without increasing the recycling agent or active filler contents and by not requiring pre-milling of the road to accommodate the materials without changing grade height.• There was no discernable difference in the density and strengths of PDR layers produced with the single- and multi-unit trains. The main benefit of the multi-unit train is better control of maximum aggregate size by the on-board screens and crushing unit. However, the crushing unit does not appear to change or improve the finer portion of the gradation (i.e., material passing the #4 [4.75 mm] sieve), which will have a larger influence on compaction density, air-void content, strength, and moisture resistance.• On coarse gradations, higher foamed asphalt contents were required to achieve the minimum indirect tensile strength requirement compared to emulsified asphalt. This is attributed in part to the coating action provided by emulsion treatments being more effective than the “spot welding” action provided by foam treatments on coarse, high air-void content gradations.• Marshall compaction overestimated the in-place density of PDR layers to a greater extent than gyratory compaction.• Rerolling can result in a small increase in density on PDR-EA layers. The timing of rerolling will influence the extent of this increase.• The densities recorded on specimens produced for strength and stability tests were not always consistent with the density results measured on the layer. This difference was attributed in part to inherent variability in the materials and pavement structure, sampling and handling procedures, and different specimen preparation procedures used by the contractors.• Relationships between gradations of field samples and field densities were inconsistent, which was also attributed to inherent variability in the materials that may not be captured in the small samples taken to represent a relatively large area of the layer.The pilot projects should be monitored to evaluate long-term performance. Monitoring should include annual visual surveys, annual or biannual falling weight deflectometer testing, and biannual coring and dynamic cone penetrometer testing. This study has highlighted a number of issues and suggested changes within the PDR mix design and quality control procedures followed in these projects (CT 315), which have been discussed with the method owner.
    Keywords: Engineering, partial-depth recycling, cold in-place recycling
    Date: 2022–01–01
  7. By: Andrej Woerner (Ludwig Maximilian University of Munich); Sander Onderstal (University of Amsterdam); Arthur Schram (University of Amsterdam)
    Abstract: For reward-based crowdfunding, we introduce the strategy-proof Generalized Moulin-Shenker mechanism (GMS) and compare its performance to the prevailing All-Or-Nothing mechanism (AON). Theoretically, GMS outperforms AON in equilibrium profit and funding success. We test these predictions experimentally, distinguishing between a sealed-bid and a dynamic version of GMS. We find that the dynamic GMS outperforms the sealed-bid GMS. It performs better than AON when the producer aims at maximizing funding success. For crowdfunding in practice, this implies that the current standard of financing projects could be improved upon by implementing a crowdfunding mechanism that is similar to the dynamic GMS.
    Keywords: keywords
    Date: 2022–11–13

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