2009, Vol.61, No.

The Korea Spatial Planning Review 2023 KCI Impact Factor : 1.2

pISSN : 1229-8638
https://journal.kci.go.kr/krihs

This study is the following one of the Song's research(2001) and the purpose of this study is to estimate the social discount rate that can be used in the economic feasibility study of the public transportation investment projects, considering the latest change in Korean economic environments. This study investigated various theories and arguments regarding the social discount rate firstly, and estimated the Korean social discount rate using Burgess' model which had been used in Song's research(2001) to estimate the social discount rate of roads, railroads, ports, etc. Especially, Burgess' model is said that it can consider the characteristics of the public transportation investment projects having the supplementary relationship on the private sector's productivity. To estimate the social discount rate by applying Burgess' model, the various Korean macro-economic data during the period of 1981~2007 year was collected. But the sudden fall of the Korean real market interest rate during the period of 2001~2007 year distorted the result of applying Burgess' model. So in the case of the period of 2001~2007 year, the real market interest rate and the estimated one were considered together to apply Burgess' model. By appling these methods, the appropriate social discount rate of transportation investment projects in Korea was proposed in the range of 5.0%~5.5%(in real value).

Many countries in the world have attracted private participation, in providing infrastructures, to overcome limited funds and reduce risks involved in those projects. And, project finance is considered effective to accomplish this public-private partnerships. In general, there exist lots of complicated uncertainties in project finance due to long-term concession and huge project size. Among these uncertainties, the strategic decision-making of investment time delay has been problematic, even if it seems to have an impact on project value, because traditional capital budgeting theory, NPV analysis, fails to assess its contingency. Therefore, the purpose of this paper is to provide a theoretical framework in evaluating this strategic decision-making in project finance. To understand the impact of time delay on project value, real option framework based on financial option pricing theory is applied. In turn, the quantitative value of time delay obtained by real option framework is compared and analyzed with that of NPV analysis. At last, because the value of strategic decision-making appears significant against project value, it needs to be taken into account when implementing financial feasibility analysis.

Affordable housing has been an important concern for local governments in the recent and has become a more pressing issue. Efforts to understand and explain how local governments influence housing affordability have been less than successful because they ignore the fact that cities and unincorporated areas are nested within county government. Empirical models, thus far have not been able to capture this nested structure. This paper extends the political economy of local policy-making to investigate how the configurations of county and sub-county governments shape local housing affordability. Multi-level analysis is applied by estimating a hierarchical linear model. The empirical findings generally confirm the predictors of the political market explanation and reveal county level decisions influence affordability at the local level and that the hierarchical structure is responsive to constituency demands. As predicted, political institution plays a mediating role with relations to constituencies’demand.