ECE472 — Engineering Economic Analysis and Entrepreneurship
- core idea
- public sector (government) projects provide:
- public goods — facilities and services available to many people
- spill over benefits to third parties not directly involved
- long project life, large and costly
- public sector (government) projects provide:
- evaluated with benefit-to-cost project evaluation
- from the citizen POV
- benefits
- disbenefits
- from the government POV
- costs — govt expenditures over the planning period
- savings — income received by the govt as a result of the project
- from the citizen POV