CBA and evaluation of fiscal impacts
The various levels of analysis
As shown in the conceptual framework, CBA can be carried out at various levels according to the type of economic and financial analysis intended to be performed. One way to approach the exercise is to carry out the analyses from the perspective of players. The following analyses could thus be performed:
1) From the perspective of society as a whole, considering the economic flows related to the ample benefits that LAPs can generate for all citizens by reducing transaction costs and the total costs of the LAP during its implementation, and also by increasing property value.
2) From the perspective of Land Administration Institutions (LAI), which can gain in efficiency and save operating resources in the transactions they carry out concerning property regularization and collection from users for registration formalities (buying and selling, mortgages, certification, etc.) or updating and maintenance of the cadastre (mapping, updating, handing over plans and certificates, etc.), and LAP costs linked to the LAI in particular.
See Module 2
3) From the perspective of families whose tenure rights have been strengthened through the LAP and who can, as a result, increase their production investments in rural land or improvements in housing on urban properties.
See Module 4
4) From the perspective of municipalities which can, through LAPs, increase their taxpayer base in relation to local property taxes.
See Module 5
Information sources
The information sources for carrying out CBA include records from previous phases of LAPs, real data from the project under analysis, household surveys carried out by the same project or for other purposes, LAI records, surveys of users of services provided by LAIs, other types of surveys such as measurement of living standards or other national statistical compendia, and interviews with experts from LAIs and other relevant institutions.
The following table shows the information required for FFEAs, and their corresponding sources for each evaluation type (ex ante and ex post).
Table of information required to carry out a CBA of LAPs
Table of information required to carry out a CBA of LAPs
Information Required | Ex - Ante Sources | Ex - Post Sources |
|---|---|---|
Scope of physical goals of RCT processes |
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LAP cost flow broken down into components or type of benefits expected |
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Data on the value and characteristics of the property |
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Data on saving LAI operating costs |
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Data on increase in LAI revenue |
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Data on saving time and money for users of LAI services |
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Data on the increase in municipal tax collection from properties regularized by the LAP and from increasing the taxpayer base |
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Information on taxes on goods and services |
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Financial interest rate (long-term opportunity cost of capital) |
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