The internal rate of return (IRR) is widely used in Private Finance Initiative (PFI) schemes in the UK for measuring performance. However, it is well-known that the IRR may be a misleading indicator of economic profitability. Treasury Guidance (2004) recognizes that the IRR should not be used...

The internal rate of return is the prominent tool for measuring the performance of real estate asset and investment portfolios. However, it brings about some problems that make it unsatisfactory, such as (i) failing to capturing value added, (ii) being associated with implicit interim values...

This article is about how the capital assets in private finance initiative (PFI) schemes are treated in government accounts. The article begins by describing how public sector obligations in relation to the capital assets of PFI schemes are accounted for in the national accounts, and also, using...

Several aggregation methods, including the EKS, start by calculating bilateral Fisher indices. Prices and quantities are, however, subject to measurement error. This stochastic behavior, which implies both unequal variances, and non-zero correlations, between different Fisher indices, has to be...