Alternative measures of the marginal cost of funds

Authors
Browning, EK Gronberg, T Liu, LQ
Citation
Ek. Browning et al., Alternative measures of the marginal cost of funds, ECON INQ, 38(4), 2000, pp. 591-599
Citations number
17
Categorie Soggetti
Economics
Journal title
ECONOMIC INQUIRY
ISSN journal
00952583 → ACNP
Volume
38
Issue
4
Year of publication
2000
Pages
591 - 599
Database
ISI
SICI code
0095-2583(200010)38:4<591:AMOTMC>2.0.ZU;2-Y
Abstract
This article reconciles the use of two different marginal cost-of-funds (MC F) measures by resorting To alternative marginal benefit measures. It demon strates how the alternative MCF measures can be properly applied to two cla ssic problems in expenditure analysis: local cost-benefit project evaluatio n and the second best public good level question. Relative strengths of the two MCF approaches in addressing the two problems are identified. (JEL H21 , H43).