Their "larger operations and greater buying ability," they say, will produce lower costs, and that will "mean bigger savings for you."

The companies say those contracts have often led to huge losses when unexpected technical problems and delays have produced higher-than-planned costs.

This focus, in turn, increases intertemporal discount rates and thereby produces substantial financial costs.

They have begun awarding clusters of buildings with 400 to 500 apartments, in the hope that a smaller size will produce lower costs.

It produces pain and suffering and huge economic costs," he said.

And although it produced higher administrative costs, it yielded a net savings for the state.

That would wipe out the savings and produce net additional costs of $33 billion.

The much-ballyhooed bank combinations are supposed to produce "synergy" and lower costs, which sounds great.

They are more likely to produce increased red tape and increased costs.

"Dividing the $640,000 among 80 lots would produce additional costs of $8,000 a lot," she said.