000			01244pab a2200145 454500
008			180718b1997 xxu||||| |||| 00| 0 eng d
100			_aDreze, Jacques H.
245			_aPublic economics, public projects, and their funding
260			_c1997
300			_ap.1-17
520			_aThis paper illustrates the contribution of public economics to the analysis of public projects. The illustrations pertain to peak-load pricing (electricity) and to second-best pricing under a budget constraiant (subways), also taking into account the pricing of substitutes (rail versus canals, fixed link versus air or ferries). The paper next reviews some difficulties in evaluating costs and benefits (for the Channel tunnel), compares briefly private versus public implementation, then turns to funding. After reviewing the pricing of derivatives in the Capital Asset Pricing Model and the computation of risk premia for public projects, the case for funding public projects on world capital markets is presented and applied to the denomination of Third World debt. The paper ends on a plea to consider the merits of a "World Insurance Agency for Development". - Reproduced
650			_aPublic utilities
773			_aAsian Development Review
909			_a43076
999			_c43076 _d43076