Edward Elgar Publishing Shadow Prices for Project Appraisal: Theory and Practice

Capitalizing on the extensive experience of the author in estimating shadow prices, Shadow Prices for Project Appraisal forges a bridge between theory and practice, explaining what shadow (or accounting) prices are, how they are used, and how they can be estimated. Starting from the basic principles of applied welfare economics, Elio Londero’s book provides a step by step derivation of those formulas more frequently utilized in estimating shadow prices. The preparation and use of input–output techniques are examined in detail, and different estimation approaches and updating procedures are presented. Finally, a detailed case study of shadow prices for Colombia illustrates their practical application. This book will be essential reading for students and teachers interested in cost–benefit analysis, and in shadow prices as a specialized field of applied welfare economics. In addition, the book will be an invaluable source for applied economists and practitioners interested in calculating shadow prices. Review ‘This is an excellent overview of both the conceptual underpinnings and the practical application of project economic analysis. It is strongly recommended for those wishing to explore the subject in depth. It is a major contribution to the literature.’ -- John Weiss, Asian Development Bank Institute, Tokyo, Japan ‘Cost–benefit analysis is back in fashion, stronger than ever. There is no better guide to shadow pricing for policy and project appraisal than Elio Londero’s text. A must for teachers and practitioners.’ -- David Pearce, University College London, UK About the Author Elio H. Londero, formerly of the Inter-American Development Bank, Washington, DC, US