Cost-revenue Analysis Research Articles

Cost Analysis of Outpatient Colectomy in a Tertiary Center: A Projected Medico-Economic Evaluation

Aim of the study: Short stay processes are incentives to unburden chronically stressed healthcare systems. The aim of this study is to analyze financial implications of day admission (DAS) and outpatient strategies for colon resections in a prospective payment system (PPS) using Diagnosis Related Group (DRG) coding. Methods: Consecutive patients undergoing left and right colonic resections between January 1, 2019 and December 31, 2020 were included. Medico-economic evaluations of the virtual outpatient and day admission surgery groups based on predefined criteria were compared to the identical group of patients who underwent surgery in the actual traditional inpatient setting. In a second step, postoperative complications of the virtual outpatient group were assessed. Cost-revenue analysis was performed using a micro-costing approach including direct medical costs. Results: Overall (N = 257), 97 (37.7%) colectomies would have been potentially eligible for an outpatient strategy. The global costs of the actual inpatient strategy totaled USD 3 634 392 with a global revenue of USD 3 571 069, corresponding to a cost coverage rate of 98%. The result of the virtual DAS strategy would have been a net loss of USD 15 800 (coverage rate of 99%) due to 4 low length of stay outliers triggering a reimbursement reduction and preventing a positive net result of USD 16 208. The pilot reference outpatient case’s revenue and cost amounted to respectively USD 7479 and USD 6911 (cost coverage of 108%). Conclusion: From both any given hospital and healthcare system point of view, elective outpatient colectomy for selected patients is the most cost-saving option. However, in a prospective payment system implemented to avoid bad incentives, the latter can unintentionally disadvantage best performing hospitals and impede widespread adoption of high-value strategies.

Environmental reclamation of limestone mining sites in Italy: Financial evaluation, challenges and proposals for sustainable development

Currently the environmental restoration of former extraction sites of limestone materials to be used in construction sector is still an open issue, challenging the opportunities for a more sustainable development of local communities.The present study evaluates the multiple causes underlying the abandonment of former limestone quarries and the lack of their reclamation as well as proposals to promote their environmental restoration.We primarily frame the issue in both the European and Italian regulatory framework. Then, the present study applies an innovative Cost Revenue Analysis to a case study of a generic environmental restoration project of a former extractive limestone site. Such analysis deepens on investment and operating costs, revenues, Net Present Value and Revenue/Costs ratio. Results show that restoration activities, performed in agreement with current regulations, involving the creation of terraces in embankments by means of excavation materials from external construction sites or even acting directly on the existing quarry, are currently discouraging for entrepreneurs, since they do not generate enough revenues to cover the costs of restoration. As a result, we suggest some solutions to strengthen the current regulatory and political framework, to make the restoration activities more convenient in financial terms. Such solutions would be also beneficial for the society and environment.

Enhanced Dynamic Control Strategy for Stacked Dynamic Regulation Frequency Response Services in Battery Energy Storage Systems

Energy storage systems are undergoing a transformative role in the electrical grid, driven by the introduction of innovative frequency response services by system operators to unlock their full potential. However, the limited energy storage capacity of these systems necessitates the development of sophisticated energy management strategies. This paper investigates the newly introduced frequency response service, Dynamic Regulation, within the Great Britain electrical grid. Our study not only establishes control parameters but also demonstrates a novel approach to energy management that pushes the boundaries of the allowable service envelope. We present two distinctive control methods, the first serving as a reference for standard response, and the second as a dynamic control approach, exploiting the extremities of the allowable service envelope. A comprehensive sensitivity analysis that considers availability, the number of equivalent full cycles, and cost–revenue analysis based on grouped dynamic control state of charge setpoints is carried out. Our results underscore that the optimization of average availability takes precedence over merely minimizing the number of cycles, which leads us to define a target state of charge range of between 40% and 45% for a 1-h battery to achieve an availability >95%. Furthermore, our study presents simulated results utilizing real-world frequency data, which reveal the transformative potential of the latter control method. By enhancing the availability of battery energy storage systems, this innovative approach promises not only higher revenues for the asset owner but also assists the system operator in managing frequency.

Mobile Storage for Demand Charge Reduction

Electric vehicles (EVs) are at the intersection of transportation systems and energy systems. The EV batteries, an increasingly prominent type of energy resource, are largely underutilized. We propose a new business model that monetizes underutilized EV batteries as mobile energy storage to significantly reduce the demand charge portion of many commercial and industrial users’ electricity bills. This business requires minimal hardware to enable discharging the batteries of electric vehicles and a sharing platform that matches EVs to commercial electricity users in real time. Using real meter data, we show that a large number of users can be served by a small number of EVs in the proposed business model. Cost-revenue analysis based on a real electric tariff suggests that the demand charge saving covers the capital costs of needed hardware and the compensation for EV drivers to provide the service.

Financial Impacts of the Energy Transition in Housing

This paper explores the topic of the energy transition in housing. The work aims to offer a knowledge base for energy policy on the current scenario of the energy redevelopment of Italian multi-family buildings. The financial feasibility of energy retrofit projects in the case of multi-apartment buildings is then analyzed. From a set of projects located in the Campania region (Italy), the typical building on which to carry out ordinary energy efficiency works was identified. Two design variants are considered on which to implement the Cost-Revenue Analysis (CRA): (i) energy retrofit intervention not including photovoltaic system; (ii) energy retrofit intervention including photovoltaic system. For the second design variant, further analyses were conducted (sensitivity analysis, scenario analysis, risk analysis) to identify the main sensitive variables and to estimate the probability of financial failure of the intervention. The study shows that interventions without photovoltaics are unlikely to be financially sustainable. However, although the presence of photovoltaics significantly increases the savings in the bill, the Payback Period (PP) remains quite high. An ordinary energy retrofit project including photovoltaic technology can be made financially sustainable only by resorting to government building bonuses, in the absence of which the probability of failure is 46%.

Criteria for Judging the Effectiveness of Guardians’ Consent

The rapid growth of data interests may increase the risk of damage to the interests of minors. Although there is a system of informed consent by guardians in the existing legal system, the restrictions on the validity of consent are vague, resulting in a large number of ineffective consents that violate the interests of minors. As for the restriction of the validity of consent, the representative theories in academic research are the " scene justice theory " and the " justifiable purpose theory ". In this paper, we adopt the Cost-revenue analysis method to analyze the costs and revenue of the two doctrines and compare the net profit. Then, the Cost-revenue analysis of the " scene justice theory " as a perfection proposal and the existing system was conducted, and the conclusion was drawn. The proposal can protect the economic and personal interests of minors, and the cost of operating the system is low and fixed, and the cost of obligations is also low. In terms of net profit, the proposed improvement is better than the status quo, and the " scene justice theory " should be introduced as a criterion for judging the effectiveness of guardians' consent.

Consumers' Path to Purchase Journeys: An Omnichannel Deep-Learning Model

The proliferation of omnichannel practices and emerging technologies opens up new opportunities for companies to collect voluminous data across multiple channels. This study examines whether leveraging omnichannel data can lead to –statistically and economically– significantly better predictions on consumers’ online path-to-purchase journeys, given the intrinsic fluidity in and heterogeneity brought forth by digital transformation of traditional marketing. Using an omnichannel dataset that captures consumers’ online behavior in terms of their website browsing trajectories and their offline behavior in terms of physical location trajectories, we predict consumers’ future path-to-purchase journeys based on their historical omnichannel behaviors. Using a state-of-the-art deep-learning algorithm, we find that using omnichannel data can significantly improve our model’s predictive power. The lift curve analysis reveals that the omnichannel model outperforms the corresponding single-channel model by 7.38%. This enhanced predictive power benefits various heterogeneous online firms, regardless of their size, offline presence, mobile app availability, or whether they are selling single- or multi-category products. Using an illustrative example of targeted marketing, we further quantify the economic value of the improved predictive power using a cost-revenue analysis. Our paper contributes to the emerging literature on omnichannel marketing and sheds light on the inherent dynamics and fluidity in consumers’ online path-to-purchase journeys.

Economic performance and cost-effectiveness of using a DEC-salt social enterprise for eliminating the major neglected tropical disease, lymphatic filariasis

BackgroundSalt fortified with the drug, diethylcarbamazine (DEC), and introduced into a competitive market has the potential to overcome the obstacles associated with tablet-based Lymphatic Filariasis (LF) elimination programs. Questions remain, however, regarding the economic viability, production capacity, and effectiveness of this strategy as a sustainable means to bring about LF elimination in resource poor settings.Methodology and principal findingsWe evaluated the performance and effectiveness of a novel social enterprise-based approach developed and tested in Léogâne, Haiti, as a strategy to sustainably and cost-efficiently distribute DEC-medicated salt into a competitive market at quantities sufficient to bring about the elimination of LF. We undertook a cost-revenue analysis to evaluate the production capability and financial feasibility of the developed DEC salt social enterprise, and a modeling study centered on applying a dynamic mathematical model localized to reflect local LF transmission dynamics to evaluate the cost-effectiveness of using this intervention versus standard annual Mass Drug Administration (MDA) for eliminating LF in Léogâne. We show that the salt enterprise because of its mixed product business strategy may have already reached the production capacity for delivering sufficient quantities of edible DEC-medicated salt to bring about LF transmission in the Léogâne study setting. Due to increasing revenues obtained from the sale of DEC salt over time, expansion of its delivery in the population, and greater cumulative impact on the survival of worms leading to shorter timelines to extinction, this strategy could also represent a significantly more cost-effective option than annual DEC tablet-based MDA for accomplishing LF elimination.SignificanceA social enterprise approach can offer an innovative market-based strategy by which edible salt fortified with DEC could be distributed to communities both on a financially sustainable basis and at sufficient quantity to eliminate LF. Deployment of similarly fashioned intervention strategies would improve current efforts to successfully accomplish the goal of LF elimination, particularly in difficult-to-control settings.

Spray Hose Irrigation System Increased Yield of Polyethylene Mulched Shallot

Spray hose is a micro-irrigation system using perforated hose as for micro irrigation. Shallot conventional cultivation requires lots of water and labor man days therefore is more efficient. Shallot cultivation system needs to be developed to increase yield and to reduce production cost. This research was conducted to compare conventional cultivation methods with using Spray hose and polyethylene mulch for shallot production. This research was conducted in a hydromorphic alluvial soil type at the Center for Tropical Horticulture Studies Field Station in Kersana, Brebes, Central Java (S 6 o, 55’, 20.536”; E 108o, 51”, 50618”) from May to July 2016. The experiment was arranged in a randomized complete block design (RCBD) with a single factor and three levels of planting system, i.e. conventional ‘Surjan’ system without mulch, one line spray hose with mulch, and two lines spray hose with mulch, with five replications. The result showed that shallots production using of polyethylene mulch and two-line spray hose had higher yields than the conventional method. In addition, this system is more efficient in terms of labor requirement. Cost Revenue Analysis shows that conventional cultivation R/C ratio was 1.72, one-line spray hose R/C ratio was 1.92, while two-line spray hose was 2.26. This study demonstrated that the use of polyethylene mulch combined with two-line spray hose significantly improved shallot growth and increased bulb production, and more cost efficient.Keywords: R/C ratio, micro irrigation, labor, ‘Surjan’ system, soil drench, fertilizerConclusionIrrigation of shallot with two-line spray hose resulted in a better crop growth and a higher yield than conventional planting system and one-line spray hose for polyethylene mulched shallot. Conventional planting system using more water and labor requirement than the two other treatments. Combination of two-line spray hose and polyethylene mulch had the most eficient cost production of shalot compared to the conventional system and one-line spray hose.

Water Efficient Alternative Crops for Sustainable Agriculture along the Tarim Basin: A Comparison of the Economic Potentials of Apocynum pictum, Chinese Red Date and Cotton in Xinjiang, China

This study explores a paradigm of sustainable land use in the oases along the Tarim River of northwest China, where a fragile, semi-arid riparian ecosystem is being damaged by excessive land and water use for agriculture, especially for the growing of cotton. The reliance of agriculture on water-demanding cash crops in this region poses a grave threat to survival of the natural Tugai vegetation in the area and to the long-term sustainability of the region. We explored the hypothesis that the species Apocynum pictum (A. pictum), known as Lop-Kendir by locals, and the Chinese red date (Zyzyphus jujube) may act as sustainable crop substitutes for the region, thereby replacing the widely distributed cash crop of cotton that has high water demands. Therefore, we investigated current utilization and cost-revenue structure of these two alternative plants and compared the results to cotton. Three natural resource management types of A. pictum were both identified in the wild and cultivation, with cost-revenue analysis carried out for each. The results show that all three types of institutional arrangements of natural resources, which are namely open access, ranching and farming, were present in our study and at various levels for A. pictum. A. pictum farming costs 16,250.25 yuan/ha, generates 49,014.45 yuan/ha of revenue from raw materials and brings a profit of 32,764.2 yuan/ha, which is the highest of all three cash crops compared. The Chinese government encourages Chinese red date plantations with a “Grain for green” campaign in the Tarim Basin with this plant being more profitable than cotton, which could serve to diversify the region’s agriculture. We conclude that A. pictum offers opportunities for the restoration of vegetation in riparian ecosystems on salinized sites under the arid conditions of the Tarim Basin. Furthermore, it can serve as a viable land-use alternative to cotton for cash crop agriculture, as it may generate a certain income in the form of tea and fibers as well as fodder for livestock.

전기차 카셰어링 시스템 최적화를 위한 모델링 및 시뮬레이션

전기차 카셰어링은 친환경차량인 전기차를 여러 사용자들이 함께 이용함으로써 교통부문의 온실가스 발생량을 감소시키고, 동시에 자가용 증가로 인한 공간 및 환경문제를 해결할 수 있는 방안으로 주목받고 있다. 그러나 아직 도입단계에 불과하기 때문에 전기차 카셰어링 시스템의 효율성이나 사업가능성에 대한 연구나 분석이 필요한 실정이다. 이러한 배경하에 본 연구에서는 전기차 카셰어링 시스템의 운영상태와 결과를 분석이 가능한 모형을 개발하였으며, 현재 실시되고 있는 시범사업 내용을 반영하여 시뮬레이션을 실시하였다. 시뮬레이션 결과 전기차 카셰어링 시스템 운영과 관련된 변수들 사이의 관계와 운영효율을 최대화 할 수 있는 최적용량 등을 분석하였다. 시뮬레이션 분석에서는 차량대수와 충전기수가 증가할수록 서비스 제공율은 계속 증가하다가 일정수준에 도달하면 증가폭과 그 효율이 감소하는 것으로 나타났다. 또한 카셰어링 시스템 운영에 따른 수익과 비용을 분석하여 연간 운영 이익을 최대화 할 수 있는 최적 차량대수 및 최적 충전기 수를 도출하였다. Electric vehicle car sharing (EV-sharing) system is noted as an eco-friendly system of transportation in global warming crisis and has been practically implemented in some cities around the world. However, methodologies to find the efficient operation conditions of EV-sharing systems reflecting a typical characteristic 'charging' have not been fully investigated yet. In the paper a generalized model has been developed to identify optimal level of infrastructure for EV-sharing system which provides the optimum operation efficiency under service level constraints. From the simulation analysis based on the developed model the relationships between the operational variables to describe EV-sharing system have been identified and optimal capacity to maximize the operational efficiency have been found. From the analysis of simulation results it has been found that increases in the number of vehicles and chargers improve the service level until certain value beyond which increasing rate and the efficiency have been reduced. From the cost-revenue analysis the optimal numbers of vehicles and chargers have been identified which maximizes the annual operational profit.

Holistic assessment of a landfill mining pilot project in Austria: Methodology and application.

Basic technical and economic examinations of Austrian mass waste landfills, concerning the recovery of secondary raw materials, have been carried out by the 'LAMIS - Landfill Mining Austria' pilot project for the first time in Austria. A main focus of the research - the subject of this article - was the first devotion of a pilot landfill to an integrated ecological and economic assessment so that its feasibility could be verified before a landfill mining project commenced. A Styrian mass waste landfill had been chosen for this purpose that had been put into operation in 1979 and received mechanically-biologically pre-treated municipal waste till 2012. The whole assessment procedure was divided into preliminary and main assessment phases to evaluate the general suitability of a landfill mining project with little financial and human resource expense. A portfolio chart, based on a questionnaire, was created for the preliminary assessment that, as a result, has provided a recommendation for subsequent investigation - the main assessment phase. In this case, specific economic criteria were assessed by net present value calculation, while ecological or socio-economic criteria were rated by utility analysis, transferring the result into a utility-net present value chart. In the case of the examined pilot landfill, assessing the landfill mining project produced a higher utility but a lower net present value than a landfill leaving-in for aftercare. Since no clearly preferable scenario could be identified this way, a cost-revenue analysis was carried out in addition that determined a dimensionless ratio: the 'utility - net present value quotient' of both scenarios. Comparing this quotient showed unmistakably that in the overall assessment, 'leaving the landfill in aftercare' was preferable to a 'landfill mining project' in that specific case.

Centralized resource allocation based on the cost–revenue analysis

In this paper, we present a centralized approach for reallocating resources based on revenue efficiency across a set of decision making units (DMUs) under a centralized decision-making environment. The proposed models extend the traditional revenue efficiency model by allowing for reallocation of inputs within the DMUs. Numerical examples are presented to illustrate the proposed approach. The results show that our approach is able to achieve higher total revenue compared with that of the conventional non-centralized revenue efficiency model. Furthermore, a cost–revenue analysis is performed between the reallocation cost and the revenue increase from the reallocation of inputs, which can provide information for the central decision-maker with respect to whether or how to reallocate the resources across the DMUs.

The possible impact of the German DRGs reimbursement system on end-of-life decision making in a surgical intensive care unit.

More than 70 % of critically ill patients die in intensive care units (ICUs) after treatment is reduced. End-of-life decision making in the ICU is a grey area that varies in practice, and there are potential economic consequences of over- and under-treatment. The aim of this study was to describe the end-of-life decisions of critically ill patients in a surgical ICU in Germany and to identify how financial incentives may influence decision making. Data on the admission diagnosis, end-of-life decision making and cause of death were obtained for 69 critically ill patients who died in the ICU (Hospital of Bayreuth, Germany) in 2009. A cost-revenue analysis was conducted on the 46 patients who did not die within 3 days of ICU admission. Because we lacked real data on costs, our analysis was based on the average cost for each diagnosis-related group (DRG) from the Institute for the Hospital Remuneration System (InEK). Hospital revenues based on the DRG were considered. Subsequently, we compared the estimated financial impact of earlier and later decisions to withdraw or withhold futile therapy. In this study, we found that end-of-life decision making was poorly documented. Only 11 % of patients had a valid power of attorney and advanced directives, and therapy with presumed consent was performed in 43 % of all cases. From long-stay patients, therapy was withdrawn for 37 % of patients and withheld from 26 % of patients, and 37 % of the patients died receiving maximal therapy. Almost 72 % of DRG-related reimbursements were dependent on ventilation hours. The average total cost estimate (according to InEK) for the 46 long-stay patients was 1,201,000 <euro>. The revenues without additional remuneration were 1,358,000 <euro>, and the total estimated profit was approximately 157,000 <euro>. Only 10 cases were assumed to be non-profitable. In cases where the decision to withdraw or withhold therapy could have occurred 3 days earlier, the estimated profit shrank to 72,000 <euro> (46 % of estimated ICU profit). In situations where the decision to withdraw or withhold therapy from patients could have occurred 3 days later, the hypothetical profit rose to 217,000 <euro> (138 % of estimated ICU profit). There are still few patients with clear self-determination, and almost half of therapies are performed only according to presumed consent. The strong nonlinear dependence of DRG revenues on ventilation hours could influence ethical decision making of medical professionals. The decision-making process and appropriate therapy in the ICU setting need to be defined more clearly and better documented, focusing on the benefits to the patient while respecting patient consent.

Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria

The prospects of increasing temperatures, a growing frequency of snow scarce winter seasons and rising energy prices raise questions about the future profitability of snowmaking. Therefore, we carry out a cost–revenue analysis of snowmaking based on projected daily snowmaking hours and visitor numbers until 2050 for a case study site in Austria. The results show that ski area operators are at risk of facing a substantial increase in total energy costs due to expected rising electricity costs, although the total amount of snowmaking hours is projected to slightly decrease because of shrinking feasible time for snowmaking (considering current snowmaking infrastructure). In the long run ski visitor numbers are projected to decline due to decreasing overall snow depths. Overall, the profitability analysis of skiing operations reveals that price increases in ski lift tickets, slightly higher than observed in the recent past, will be inevitable in order to keep skiing operations profitable in future.

Financial sustainability in municipal solid waste management – Costs and revenues in Bahir Dar, Ethiopia

Providing good solid waste management (SWM) services while also ensuring financial sustainability of the system continues to be a major challenge in cities of developing countries. Bahir Dar in northwestern Ethiopia outsourced municipal waste services to a private waste company in 2008. While this institutional change has led to substantial improvement in the cleanliness of the city, its financial sustainability remains unclear. Is the private company able to generate sufficient revenues from their activities to offset the costs and generate some profit?This paper presents a cost-revenue analysis, based on data from July 2009 to June 2011. The analysis reveals that overall costs in Bahir Dar’s SWM system increased significantly during this period, mainly due to rising costs related to waste transportation. On the other hand, there is only one major revenue stream in place: the waste collection fee from households, commercial enterprises and institutions. As the efficiency of fee collection from households is only around 50%, the total amount of revenues are not sufficient to cover the running costs. This results in a substantial yearly deficit. The results of the research therefore show that a more detailed cost structure and cost-revenue analysis of this waste management service is important with appropriate measures, either by the privates sector itself or with the support of the local authorities, in order to enhance cost efficiency and balance the cost-revenues towards cost recovery. Delays in mitigating the evident financial deficit could else endanger the public-private partnership (PPP) and lead to failure of this setup in the medium to long term, thus also endangering the now existing improved and currently reliable service.We present four options on how financial sustainability of the SWM system in Bahir Dar might be enhanced: (i) improved fee collection efficiency by linking the fees of solid waste collection to water supply; (ii) increasing the value chain by sales of organic waste recycling products; (iii) diversifying revenue streams and financing mechanisms (polluter-pays-, cross-subsidy- and business-principles); and (iv) cost reduction and improved cost-effectiveness.We argue that in a PPP setup such as in Bahir Dar, a strong alliance between the municipality and private enterprise is important so that appropriate solutions for improved financial sustainability of a SWM system can be sought and implemented.

ECONOMIC ANALYSIS OF CEREAL, VEGETABLE AND GRAPE PRODUCTION SYSTEMS IN URBAN AND PERI-URBAN AGRICULTURE OF KABUL, AFGHANISTAN

SUMMARYLittle is known about the economics of urban and peri-urban agriculture in Kabul, Afghanistan. This study therefore aimed to investigate the profitability of 15 mixed cropping farms with a total of 42 farm plots that were selected from a survey of 100 households (HHs). The sample represented the three dominant farm types: cereal producers (15 plots), vegetable farmers (15 plots) and grape producers (12 plots). A cost-revenue analysis of all inputs and outputs (costs of tillage, seed where applicable, weeding, harvesting, casual labour, machinery use, pruning, pesticides and of revenue from produce sold) over two years showed major differences in net HH income. Differences were largely due to production type and crops grown and reflected differences in market prices for produce. Cereal production yielded a total bi-annual revenue of 9630 US$ ha−1, and a gross margin and a net profit of 8770 US$ ha−1. Vegetable farming gave an average bi-annual revenue of 27 900 US$ ha−1, a gross margin of 26 330 US$ ha−1and a net profit of 25 530 US$ ha−1. Surprisingly, vineyards generated the lowest returns with a revenue of 5400 US$ ha−1, and a gross margin and a net profit of 4480 US$ ha−1. The results suggest that among the production systems studied vegetable cultivation was most profitable given its direct linkage to city market demands, rather stable prices and much shorter growing season than for cereals and grapes. In addition, the inflow of wheat and grapes from rural areas into the city negatively affects local producer revenues. If vineyards are to be maintained in the city surroundings, incentives such as subsidized credit may need to be made available to producers.

Increasing Operating Room Throughput

Increasing Operating Room Throughput

Integration of Cost-Benefit and Financial Analysis in Project Evaluation

The recent profound shift in the financing of American local governments, which are increasingly dependent on user fees and non-traditional revenue sources, justifies consideration of how to integrate cost-benefit analysis (CBA) and cash-flow analysis (CFA) in project evaluation. This paper focuses on establishing the conceptual framework for a two-tiered methodology rather than on technical issues of CBA and CFA. It should be noted that CBA and CFA represent only two of a number of project evaluation tools including cost-revenue analysis (CRA) and cost-effectiveness analysis (CEA).1 Throughout this article, the goods and services under consideration are referred to as projects for simplicity. CBA is an expenditure-evaluation procedure for estimating whether public provision of a good or service maximizes net social welfare (NSW). The goal of CBA is to measure the social gains and losses resulting from a proposed project. A key problem in CBA is how to monetize benefits and costs, and major assumptions often have to be made. Traditionally, it has emphasized expenditure allocation and tended to ignore financing issues.2 Project evaluation cannot be so readily separated from financial analysis under conditions in which opportunities for privatization and partial or full cost recovery through user payments must be considered. CFA is commonly used in business enterprises to make long-term investment decisions. CFA forecasts the cash receipts and cash expenses associated with a proposed project. Like CBA, it involves selection of an appropriate discount rate for converting future to present values. CFA evaluates the financial consequences of project provision, and it may be used for either commercial-feasibility determination or user-fee determination. Since passage of California's Proposition 13 and Massachusetts' Proposition 2?2, a revolution has occurred in the financing of American state and local governments.3 Fiscal austerity has compelled state and local governments to consider a variety of cutback management strategies.4 Among these strategies are innovative financing methods, defined as new tax bases or nontraditional public revenue sources such as lotteries and development impact taxes;5 creative financing methods to attract private funding especially for capital assets;6 alternative service delivery, including franchising, con* This paper proposes a new conceptualframework for integrating cost-benefit analysis (CBA) and cash-flow analysis (CFA) into a two-tiered methodology for evaluating local government activities. The evaluation procedure may be enteredfrom either a CBA or a CFA perspective. The revolution in financing of American state and local governments engendered by fiscal austerity is steadily breaching the traditional separation of revenue and expenditure in CBA. This paper demonstrates that breaching and its implications explain the major issues encountered in developing an integrated, two-tiered methodology for project evaluation, and it applies the methodology to illustrative case studies of a parking garage and an emergency ambulance service.

A Goal-Setting and Evaluation Model for Community Development

A multicriteria optimization approach to the formulation of land use policies for community development is presented. The construct adds to municipal cost-revenue analysis by incorporating socioeconomic and demographic factors. It also deals with community goals in an explicit manner. Results are presented based upon experience in a small city.