HANDBOOK ON
ECONOMIC ANALYSIS OF
INVESTMENT OPERATIONS
Pedro Belli
Jock Anderson
Howard Barnum
John Dixon
Jee-Peng Tan
Operational Core work
Learning and Leadership Center
January 26, 1998
Acknowledgments
This Handbook is the product of a team effort. Jock Anderson contributed to the
chapter on risk analysis, Howard Barnum to the chapter on the assessment of health projects,
John Dixon to the chapter on environmental externalities, and Jee-Peng Tan to the chapter on
the assessment of education projects. e Psacharopoulos provided very valuable inputs
on the assessment of education projects. Rodrigo Archondo-Callao, Shanta Deverajan, Colin
A. Gannon, Pablo Guerrero, h M. Gwilliam, Ian G. Heggie, David Hughart, Howard
Jones, Ulrich Lachler, Julio Linares, Ricardo Martin, Roberto Mosse, A. Mead Over, David A.
Phillips, Anandarup Ray, Robert Schneider, Zmarak Shalizi, Sethaput Suthiwart-Narueput,
Lyn Squire, Alfred Thieme, Ulrich Thumm, Herman van der Tak, William A. Ward, and
h Watson provided ments. We owe a major intellectual debt to Arnold
A. Harberger; through his writings over the years he not only provided the theoretical
underpinnings of the approach but mented on several versions of the manuscript. We
are also thankful to Glenn Jenkins for kindly granting permission to use case materials that he
has developed for use at Harvard University. Many thanks also go to Patricia Rogers, for her
editorial services, and to Toneema Haq and Kristyn Schrader for their assistance in writing
various illustrative boxes, manipulating large amounts of unwieldy data, and skillfully putting
the manuscript together. Any errors are entirely my responsibility.
Pedro Belli
January 26, 1998
Contents
Introduction ...................................................................................................................1
Organization of the Handbook .........................................................................................1
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