Allowing for differential timing in cost analyses: discounting and annualization.

@article{Walker2002AllowingFD,
  title={Allowing for differential timing in cost analyses: discounting and annualization.},
  author={Damian G. Walker and Lilani Kumaranayake},
  journal={Health policy and planning},
  year={2002},
  volume={17 1},
  pages={112-8}
}
There are differences in timing related to when costs of certain inputs are incurred and when they are used over the lifetime of a programme. This paper looks at the issues related to the comparison of cost data over time focusing on discounting and annualization adjustments, which are used by economists to calculate financial and economic costs. The process of discounting is used to deal with the notion of time preference. Time preference implies that future costs are worth less, and hence… CONTINUE READING