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  • April 2002 (Revised February 2003)
  • Background Note
  • HBS Case Collection

An Economic Framework for Assessing Development Impact

By: Benjamin C. Esty, Frank J. Lysy and Carrie Ferman
  • Format:Print
  • | Pages:14
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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.)
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About The Author

Benjamin C. Esty

Finance
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