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Project Appraisal and Macroeconomic Policy
Inglês
220 b
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This book integrates the methods of project appraisal and those of macroeconomic policy evaluation, so that the macroeconomic consequences of projects can properly be taken into account. Following a description of the relevant background, the new method of analysis is developed and then applied to the example of a wind energy project in the Netherlands. §The macroeconomic model used for the evaluation of the wind energy project is one that has also been used for macroeconomic policy evaluation. According to this model, an orthodox Keynesian policy, consisting of a large increase in public expenditures of the average type, has a negative effect on balance. According to the same model, however, the effects of the wind energy project are much more positive. Partly in relation to this, it is argued that a Keynesian policy that consists of the implementation of a carefully selected portfolio of investment projects has the advantages of stimulating expenditures, but may have few of the disadvantages of an orthodox Keynesian policy. §Audience: Suitable reading for researchers and policy-makers.
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