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Air traffic management
Published in Doramas Jorge-Calderón, Aviation Investment, 2020
The next section offers a summary of the adjustments necessary in an appraisal to measure generation and use of foreign exchange in the presence of trade distortions, introducing the concept of numeraire. A full treatment of the rationale and the adjustments here described is beyond the scope of this book. The reader is referred to, for example, Curry and Weiss (2000), Boardman et al. (2018) or, referring back to original World Bank use, Squire and van der Tak (1975). This is followed by a project illustration in sections 5.3.3 and 5.3.4, each section using an alternative numeraire.
Are current design service lives for asphalt concrete pavements suboptimal? An analytic argument for longer design service lives
Published in Sustainable and Resilient Infrastructure, 2022
Craig M. Richmond, Adrián Ricardo Archilla, Bryan T. Adey
To arrive at our result, one must consider the special role played by the benefit deriving from one ESAL transit, . This is arguably the most difficult independent variable to which to assign an empirical value. However, when deciding to construct a road, a decision maker must have a view on how valuable transits are. Otherwise, one cannot select which projects to accept or reject. Our main result arises from exploring methods to estimate this empirically difficult value. Before proceeding, the reader should note that a standard result in economics is that only relative prices should affect behaviour. Otherwise, behaviour might change if people calculated in pennies rather than dollars. This cannot be so. Therefore, it is important to express price variables as ratios with respect to some numeraire. We use as the numeraire and thus values in the figures are expressed in units of .