Economic analysis of investment operations – Analytical tools and practical applications

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This guide presents information about different tools for economic evaluation.

It strongly supports the understanding of microeconomics and methods such as cost-benefit analysis as essential decision making tools for effective development and evaluation.


"Economic Analysis of Investment Operations presents general principles and methodologies that are applicable across sectors, including quantitative risk analysis; provides both theory and practice about how to evaluate transportation, health, and education projects; and explains how to assess the environmental impact of projects."

(Tan et al., 2002, p xi)


  • An Overview of Economic Analysis
  • Conceptual Framework
  • Consideration of Alternatives
  • Getting the Flows Right: Identifying Costs and Benefits
  • Getting Prices Right
  • Valuing Environmental Externalities
  • Cost-Effectiveness
  • Economic Evaluation of Education Projects
  • Economic Evaluation of Health Projects
  • Economic Evaluation of Transport Projects
  • Risk and Sensitivity Analysis
  • Gainers and Losers


Tan, Jee-Peng, Anderson, Jock R. Belli, Pedro (2002). Economic analysis of investment operations analytical tools and practical applications (English). WBI development studies Washington, D.C. : World Bank Group.