The measurement of the economic benefits of infrastructure services (Q1082996)

This report provides a methodology for evaluating the benefits (particularly to producers) of infrastructure investments. Sections 2 through 5 present the conceptual foundations for measures of the benefits of infrastructure investments. The firm's restricted profit function is regarded as a useful tool which may be used to define the gross benefit measure in a succinct manner. The costs are described with the help of the government's cost function. The econometric approach to estimate either production functions or their dual restricted profit functions is discussed in sections 7 through 10. Technical details are presented in four appendices.