Alternative measures of the marginal cost of funds Academic Article uri icon


  • 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.

published proceedings


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