Unveiling the Hidden Costs of Public Works Equipment Ownership
The article discusses the costs of owning public works equipment, which can be divided into fixed and variable costs. Fixed costs include amortisation, interest on capital, insurance, and taxes. The researchers used a linear amortisation method and a mean investment approach with an 80% interest rate to calculate these costs. They found that insurance and taxes are directly related to the cost price and can be considered as a percentage of it.