The Effects of Inflation and Its Volatility on the Choice of Construction Alternatives

dc.contributor.author	Lindsey, Lawrence
dc.contributor.author	Schmalensee, Richard
dc.contributor.author	Sacher, Andrew
dc.date.accessioned	2016-10-27T14:47:24Z
dc.date.available	2016-10-27T14:47:24Z
dc.date.issued	2011-08
dc.identifier.uri	http://hdl.handle.net/1721.1/105111
dc.description.abstract	Life Cycle Cost Analysis (LCCA) is the standard method for costing long-lived construction projects. The LCCA process determines the full costs of mutually exclusive construction options, finding the project design with the lowest total lifetime cost. LCCAs have traditionally ignored the possibility of future changes in relative prices by assuming that the real prices of all construction inputs remain fixed. This study examines historical data on real prices and finds that the assumption of constant real costs is seriously inconsistent with historical experience.	en_US
dc.description.sponsorship	MIT Concrete Sustainability Hub research is supported by the Portland Cement Association and the Ready Mixed Concrete Research and Education Foundation.	en_US
dc.language.iso	en_US	en_US
dc.publisher	MIT Concrete Sustainability Hub	en_US
dc.subject	Inflation	en_US
dc.subject	Construction	en_US
dc.subject	Life Cycle Cost Analysis	en_US
dc.subject	Concrete	en_US
dc.subject	Lumber	en_US
dc.subject	asphalt	en_US
dc.subject	steel	en_US
dc.title	The Effects of Inflation and Its Volatility on the Choice of Construction Alternatives	en_US
dc.type	Technical Report	en_US