Project Appraisal and Social Cost-Benefit Analysis
The vast majority of day-to-day operational decisions with regard to the allocation
of limited public investment funds are based on a microeconomic technique
of analysis known as project appraisal. The intellectual as well as the
operational linkage among these three major planning techniques, however,
should not be overlooked. Macro growth models set the broad strategy, inputoutput
analysis ensures an internally consistent set of sectoral targets, and
project appraisal is designed to ensure the efficient planning of individual
projects within each sector.