Rural community public project valuation applying TOPSIS multi-criteria method

The primary goal of public projects is to create social benefits for the community. The prepared public project usually has more than one option. In order to choose the most efficient option, it is necessary to take into consideration all social benefits. For this reason multi-criteria methods may be applied since they provide a possibility to assess quantitatively social benefits which are measured in many different quantitative and qualitative indicators. The problem of the research stems from a variety of social benefits indicators of public projects, the problematic establishment of their value and the need of their complex valuation. The paper presents a methodology for TOPSIS multi-criteria method adapted for the valuation of public projects in order to select investment option and the empirical research makes it possible to look at the problems of public project valuation from the practical approach. The research of the paper is aimed at revealing the advantages and limitations of TOPSIS multi-criteria method used for public projects valuation.