Economics and Financing

Part 5 provides a guide to the conditions under which the use of macro-economic models in project evaluation is appropriate and how they can be applied. Major transport infrastructure projects often significantly alter the economies of regions in which they are located and, if large enough, the national economy as well. These effects may not be fully captured by standard benefit-cost analysis evaluations. One method of estimating economic impacts of large transport infrastructure projects is the use of economy-wide type models. A class of model known as ? computable general equilibrium? has been used to analyse economy wide impacts.