Cost Overruns Explained
The discussion highlights the common phenomenon of budget overruns in large civic projects, emphasizing that initial estimates often fall short of the actual costs. Bent introduces the "hiding hand principle," suggesting that despite the financial miscalculations, many iconic structures—like subways and bridges—are ultimately beneficial and cherished. The conversation reflects on the paradox of needing to start projects without fully grasping their financial implications, yet still appreciating their existence once completed.In this clip
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EconTalk
Bent Flyvbjerg on Megaprojects
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