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Finally, it has to be reminded, that talking about these problems, usually we make financial and economic analysis. We can use financial analysis to valuate the profitability of a private investment and its capability to increase the economic operator profit. In this case, variables affect directly the profit function. In other words, the private operator takes into account the cost and benefit flow that a project can produce. The project will be feasible if the profit will be positive. In the hypothesis of several projects, the project with the highest profit will be chosen. We have to use the economic analysis if the project advantage affects the common welfare for both public investment and private investment with public financing. Public operators making decisions must take into account common interests and goals. Therefore, the function that the public operator has to maximize is the common welfare function, even with the limits reminded before that characterize this specific function.
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Tom
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613--618
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- Agrarian Economics and Politics, Faculty of Economics University of Bari - Italy
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bwmeta1.element.baztech-article-BUS6-0022-0131