COST-BENEFIT ANALYSIS – ECONOMIC TOOL USED TO AID DECISION-MAKING REGARDING THE DISTRIBUTION OF PUBLIC FUNDS Cover Image

Analiza cost-beneficiu - instrument economic folosit in luarea deciziilor privind distributia fondurilor publice
COST-BENEFIT ANALYSIS – ECONOMIC TOOL USED TO AID DECISION-MAKING REGARDING THE DISTRIBUTION OF PUBLIC FUNDS

Author(s): Marian Siminica, Daniel Circiumaru, Lucian Buse
Subject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: Cost-Benefit Analysis; structural funds; financial analysis; social and economic analysis; sensitivity analysis

Summary/Abstract: After 1990, the financial analysis of the phenomena that occur in firms has grown in importance. Financial analysts face new challenges as a result of Romania’s joining to the European Union. A thorough analysis of the investment decisions is required in order to access structural funds. Many projects that may be granted funds are not feasible from a financial point of view, generating economic and social implications. To demonstrate that the demanded funds are truly needed, the analyst has to identify and quantify as precisely as possible all costs and benefits generated by that specific investment, task which may be accomplished with the use of Cost-Benefit Analysis. For this reason, in the following pages, we shall present the main methodological aspects of the method accompanied by an example of how it is used.

  • Issue Year: XXXVI/2008
  • Issue No: 3
  • Page Count: 10
  • Language: English