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Project Appraisal For The Keynesian Investment Planner, Greg Hill
Project Appraisal For The Keynesian Investment Planner, Greg Hill
Greg Hill
This paper outlines a theory of project appraisal wherein the neoclassical premises of conventional cost-benefit analysis are replaced by their Keynesian counterparts. The paper shows how the social rate of return on investment, the private and social rates of discount, and other concepts used in cost-benefit analysis may be modified to take account of the income externalities generated by the multiplier, mark-up pricing, and the causal priority of investment over saving.