TY - JOUR
T1 - Capital budgeting under capital rationing
T2 - An analytical overview of optimization models for government
AU - Khan, Aman
PY - 2008/1
Y1 - 2008/1
N2 - 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 mathematical programming, which can substantially overcome some of the limitations of the conventional methods, have been extensively used in the private sector, but their applications have been few and far between in government. This article illustrates the potential these models hold for the capital rationing problem in government.
AB - 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 mathematical programming, which can substantially overcome some of the limitations of the conventional methods, have been extensively used in the private sector, but their applications have been few and far between in government. This article illustrates the potential these models hold for the capital rationing problem in government.
KW - Capital rationing
KW - Mathematical programming
KW - Simulation
UR - http://www.scopus.com/inward/record.url?scp=39049090811&partnerID=8YFLogxK
U2 - 10.1080/01900690701411016
DO - 10.1080/01900690701411016
M3 - Article
AN - SCOPUS:39049090811
VL - 31
SP - 168
EP - 194
JO - International Journal of Public Administration
JF - International Journal of Public Administration
SN - 0190-0692
IS - 2
ER -