1909.17,10 Contents Page 1 of 2 FSH 1909.17 - ECONOMIC AND SOCIAL ANALYSIS HANDBOOK CHAPTER 10 - EVALUATING ECONOMIC EFFICIENCY Contents 11 MEASURES 11.1 Use of Terms Economic Efficiency, Cost Efficiency, and Cost Effectiveness 11.2 Measures to Rank Alternatives 12 IDENTIFYING INPUTS, OUTPUTS, AND PRODUCTION PROCESSES 12.1 Objectives and Measures for Attainment 12.2 Uncertainty in Production Processes 12.3 Standards for Time Periods 12.4 Standards for Inputs 12.5 Standards for Outputs 13 ANALYZING COSTS 13.1 Costs for Forest Service Activities 13.11 Costs to be Considered 13.12 Standards for Costs 13.2 Fixed and Variable Costs 13.21 Distinguishing Variable Costs 13.22 Use of Variable Costs in Analysis 13.3 Development of Cost Information 13.31 Conducting Informal Cost Surveys 13.32 Using Engineering Cost Estimates 13.33 Analyzing Cost Trends 13.4 Costs in Partial Analysis 13.5 Adjustments for Real Dollar Values 14 ASSESSING MARKETS AND DEVELOPING OUTPUT VALUES 14.04 Responsibility 14.1 Outputs to be Valued 14.11 Specific Outputs to be Valued 14.2 Components of a Market Assessment 14.3 Demand Schedules for National Forest Outputs 14.31 Fixed Value/Demand Limit 14.32 Constructed Demand Curves 14.33 Statistical Demand Equations 14.34 Computation of Derived Demands 14.35 Travel Cost Method 14.4 Projection of Demand 14.5 Selection and Adjustment of Output Values 14.51 Selection of "Type" of Value 14.6 Standards for Values 14.7 Use of Demand and Value Information 15 COMPUTING MEASURES OF ECONOMIC EFFICIENCY 15.1 Discounted Measures: Scarce Resource Opportunities 15.2 Discounted Measures: Scarce Investment Funds 15.3 Relationship between Benefit/Cost Ratio, Present Net Value, Equivalent Annual Income and Internal Rate of Return 15.4 Discount Rates, and Handling Inflation and Risk 15.41 Methods and Standards for Discounting 15.42 Recommended Discount Rates 15.43 Incorporating Inflation 15.44 Incorporating Risk and Uncertainty 15.5 Project Level Economic Analysis 16 USING ECONOMIC EFFICIENCY ANALYSES FOR PROGRAM AND MANAGEMENT GUIDELINES 16.1 Sensitivity Testing 16.2 Incremental Analyses 16.3 Analysis of Least Cost Treatment Combinations 16.4 Analysis of Minimum Cost Plus Net Value Change 16.5 Breakeven Analysis