Alternative measures of the marginal cost of funds

abstract

• This article reconciles the use of two different marginal cost-of-funds (MCF) measures by resorting to alternative marginal benefit measures. It demonstrates how the alternative MCF measures can be properly applied to two classic problems in expenditure analysis: local cost-benefit project evaluation and the second-best public good level question. Relative strengths of the two MCF approaches in addressing the two problems are identified.

authors

• Gronberg, Timothy

published proceedings

• ECONOMIC INQUIRY

author list (cited authors)

• Browning, E. K., Gronberg, T., & Liu, L. Q.

citation count

• 17

complete list of authors

• Browning, EK||Gronberg, T||Liu, LQ

publication date

• October 2000

publisher

• Wiley  Publisher

published in

• ECONOMIC INQUIRY  Journal

keywords

• 38 Economics
• 3801 Applied Economics

Digital Object Identifier (DOI)

• 10.1093/ei/38.4.591

start page

• 591

end page

• 599

volume

• 38

issue

• 4

URL

• http://dx.doi.org/10.1111/j.1465-7295.2000.tb00038.x