By acting as synthetic substitutes for imperfect natural prices, shadow prices can be used by LDCs interested in improving the performance of their economies. The necessity to use shadow prices arises from the presence of imperfections that affect all economies as well as imperfections that only affect LDCs such as market labor wages that exaggerate the real scarcity of labor, the influence of monopoly power over market prices, the existence of non-optimal...
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INFORMATION
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1969/06/30
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Document de travail des services de la Banque mondiale
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SWP47
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1
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1
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2010/07/12
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Disclosed
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Shadow prices for project evaluation in less developed countries
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shadow price
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