Kooperativer Bibliotheksverbund

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Format: 1 online resource (xiv, 235 pages) : , digital, PDF file(s).

ISBN: 1-316-48918-3 , 1-316-49072-6 , 1-316-39275-9

Content: Written by two leading experts, this is a compact guide to the key tools and methods necessary to carry out cost-benefit analysis (CBA). The authors use modern economic tools to obtain general equilibrium cost-benefit rules that can be used to evaluate small projects, as well as large and even mega projects. Intertemporal issues like discounting, the shadow price of capital, and the treatment of risk are covered, and a state-of-the-art summary of available methods for the valuation of unpriced commodities is also included. In addition, the book provides detailed expositions of the marginal cost of public goods (MCPF), the marginal excess burden of taxes (MEB), and second-best evaluation rules, and shows how these concepts are interrelated. The importance of undertaking due diligence in evaluations is highlighted. This is an excellent toolkit for graduate students learning about the principles of CBA, and is a useful guide for government officials and policymakers.

Note: Title from publisher's bibliographic system (viewed on 01 Feb 2016). , Cover -- Half title -- Title -- Copyright -- Dedication -- Contents -- List of illustrations -- List of tables -- Preface -- 1 Introduction -- 2 The basic cost-benefit (C-B) model -- 2.1 A quick refresher course in micro -- 2.2 Simple general equilibrium C-B rules -- 2.3 Some further results -- 2.4 Public goods and bads -- 2.5 Non-use values -- 2.6 Cross-border externalities -- 2.7 Appendix: further derivations -- 3 Market distortions -- 3.1 Monopoly -- 3.2 Monopsony -- 3.3 Taxes in general equilibrium -- 3.4 The marginal cost of public funds and the excess burden of taxes -- 3.5 Second-best evaluations and optimal taxes -- 3.6 Permit markets -- 3.7 Market imbalances -- 3.7.1 Classical unemployment -- 3.7.2 Keynesian unemployment -- 3.7.3 On the (tiny) empirical evidence -- 3.7.4 Excess demand in a market -- 3.8 Appendix -- 3.8.1 Impact of price changes -- 3.8.2 Labor market constraints -- 4 Intertemporal generalization -- 4.1 Net present values, internal rates of return, and benefit-cost ratios -- 4.2 A brief introduction to optimal control theory -- 4.3 A simple dynamic cost-benefit rule -- 4.4 Social discount rate -- 4.5 On opportunity cost and shadow prices of capital -- 4.6 Timing of an investment -- 4.7 A useful discrete-time model -- 4.8 Appendix: the Inada-Uzawa condition -- 5 Natural resources -- 5.1 Nonrenewable resources -- 5.2 Renewable resources -- 5.3 Forestry -- 5.4 A dynamic CBA rule in the presence of an externality -- 5.5 On second-best solutions -- 6 Small versus large projects -- 6.1 Taylor series approximations -- 6.2 On Marshallian and Hicksian measures of consumer surplus -- 6.3 Large projects and line integrals -- 6.4 A simple illustration of the approach -- 6.5 On the properties of income-compensated measures -- 6.6 On the dangers of benefit transfers -- 6.7 Small might be large -- 6.8 Megaprojects and CGE models. , 6.9 Appendix -- 6.9.1 Line integrals -- 6.9.2 Expenditure functions -- 7 Aggregation -- 7.1 Social welfare functions -- 7.2 A few aggregation rules -- 7.3 Taxation -- 7.4 On practical approaches -- 7.5 On the approach to distribution in three major manuals -- 7.6 Appendix: measurability and comparability of utility -- 8 Appraisal in a risky world -- 8.1 Some simple rules -- 8.2 On the value of flexibility -- 8.3 A simple illustration of the Black-Scholes model -- 8.4 A stochastic cost-benefit rule -- 8.5 The value of preventing a fatality -- 8.6 On the risk of doomsday in CBA -- 8.7 Evaluating disasters. A sketch -- 8.8 Appendix -- 8.8.1 Concavity and quasi-concavity -- 8.8.2 A discrete-time random walk with drift -- 8.8.3 L'Hôpital's rule -- 8.8.4 An illustration of a VPF function -- 9 Notes on estimation techniques -- 9.1 Contingent valuation -- 9.2 Conjoint analysis and discrete choice experiments -- 9.3 The travel-cost model -- 9.4 Hedonic models -- 9.5 Weak complementarity and household production functions -- 9.6 Benefit transfer -- 9.7 Heterogeneity and aggregation -- 9.8 Cost estimation -- 9.9 Appendix: weak complementarity -- 10 A smörgåsbord of further topics -- 10.1 On the empirical discount rate evidence -- 10.2 Wider economic benefits -- 10.3 The current approach versus Drèze-Stern -- 10.4 On behavioral and happiness economics and CBA -- 10.5 CEA/CUA, multi-criteria analysis, and economic impact analysis -- 11 Robustness checks and due diligence in evaluations -- 11.1 Deterministic sensitivity analysis -- 11.2 Risk analysis -- 11.3 Due diligence and evaluations -- References -- Index.

Additional Edition: ISBN 1-107-54822-5

Additional Edition: ISBN 1-107-12102-7

Language: English

URL: https://doi.org/10.1017/CBO9781316392751