Given that project investment essentially leads to a demand shock in the economy, a simple input-output analysis (IOA) using labour and inter-sectoral multipliers can account for the secondary effects of project-specific capital requirements (examples). Nevertheless, this method can overstate the economic benefits of investment by lacking an endogenisation of prices through the specification of agent behaviour \cite{Partridge_2008} but also by assuming a linearization of the production processes with perfectly elastic factor supplies (Bhatia, 2008) – add Bell&Daravadjan 1985 Muda River Scheme / other CGE literature.
[price impacts of exchange rate changes]