Publications
Publications
- April 2002 (Revised February 2003)
- HBS Case Collection
An Economic Framework for Assessing Development Impact
By: Benjamin C. Esty, Frank J. Lysy and Carrie Ferman
Abstract
Discusses the differences between private and social returns and describes an economic framework for assessing a project's social return [known as the economic rate of return (ERR)]. The framework begins by analyzing the impact of a new project on private financiers [the private return known as the financial rate of return (FRR)]. The framework then identifies other stakeholders who might be affected, directly or indirectly, by the project and examines the project's impact on each group. Assumes readers have a working knowledge of cost-benefit analysis, microeconomics, and basic valuation mechanics.
Keywords
Cost vs Benefits; Microeconomics; Investment Return; Framework; Projects; Business and Stakeholder Relations; Valuation
Citation
Esty, Benjamin C., Frank J. Lysy, and Carrie Ferman. "An Economic Framework for Assessing Development Impact." Harvard Business School Background Note 202-052, April 2002. (Revised February 2003.)