ALLOCATION OF INVESTMENT FUNDS BETWEEN ROAD AND RAIL

This paper is concerned with the development of a simple and straightforward rule designed to ease the problem facing a government agency that must allocate funds for investment in transportation projects to different sectors when these sectors use different methods of investment appraisal. If, for example, funds must be allocated between road and rail projects, and the former is evaluated using a surplus rate of return (cost saving plus user benefit) and the latter a financial rate of return, it is demonstrated that these rates of return for practical purposes may be made directly comparable for interurban transport projects by multiplying the financial rate of return by the factor 1.5. The problems arising in other situations (e.g., urban areas) and that must empirically surmounted are also elaborated.

  • Corporate Authors:

    Foundation Periodical for Public Finance

    Duesternbrooker Weg-120
    D-23 Kiel,   Germany 
  • Authors:
    • Peaker, A
  • Publication Date: 1974

Media Info

  • Pagination: p. 49-55
  • Serial:
    • Volume: 29
    • Issue Number: 1

Subject/Index Terms

Filing Info

  • Accession Number: 00097233
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 29 1975 12:00AM