Capital Budgeting Under Capital Rationing: An Analytical Overview of Optimization Models for Government

• Published in: International journal of public administration Vol. 31; no. 2; pp. 168 - 194
• Main Author: Khan, Aman
• Format: Journal Article
• Language: English
• Published: New York Taylor & Francis Group 01.01.2008; Marcel Dekker, Inc
• Subjects: Budgets; Capital; Capital budgeting; capital rationing; Mathematical programming; Optimization; Private Sector; Public Administration; Rationing; simulation; Studies

Capital rationing is a real decision problem in government, yet it has never been seriously addressed in the literature on public budgeting. Conventional methods such as NPV or IRR that frequently appear in the discussion on the subject are limited in their scope. Alternative methods such as mathema...