This paper offers an assessment of the methodologies employed to estimate the economic opportunity cost of capital for public sector projects, relying on the Mexican case for an applied empirical exercise. The traditional weighted cost of capital (top-down) approach used in the estimation of Mexico's economic opportunity cost of capital is reviewed and compared to the supply price (bottom-up) approach. With respect to previous studies using the top-down...
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2014/03/01
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Documento de trabalho sobre pesquisa de políticas
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WPS6816
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1
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1
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2014/03/01
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Disclosed
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Estimating the economic opportunity cost of capital for public investment projects : an empirical analysis of the Mexican case
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cost of capital
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