A Review of LCCA Literature: Key Factors and Interpretations

This report examines prior LCCA literature for types of costs, length of analysis period, role of discounting, right discount rate, right set of rehabilitation and maintenance costs, and right approach to risk. Further, the authors offer an economics-based approach to key LCCA questions. For example, what happens when the OMB's real interest rate – widely used to construct the discount rate for analyses like LCCA – dips into negative territory, as it did in late 2020? Or, when and how is "well-being" factored into LCCA calculations? Download this free report to dig into LCCA considerations like these and more.