Common use of Economic Analysis Clause in Contracts

Economic Analysis. This comes from the financial analysis and the cash flow table in order to determine the standard methodology for the three steps required to produce the final table in the economic analysis. Economic analysis must include: • Tax/subsidy adjustments; • Corrections due to the influence of external factors (externalities); • Determination of converters (correction factors) (for instance the conversion of market prices into accounting prices and thus the integration of benefits and costs in society). This analysis focuses on how to calculate costs and benefits from a societal perspective and how these can affect to the results. It provides a guide on how to calculate the economic rate of return and helps us understanding its economic significance in the project evaluation

Appears in 2 contracts

Sources: Grant Agreement, Grant Agreement