Benefit Cost Analysis

The tools of economics are applied to the evaluate public-sector practical problems. Standard microeconomic analysis is reformulated to allow for public goods and externalities, with an emphasis on issues such as "optimal" pollution choice, environmental resource use and conservation, development of health facilities, housing regulation, housing projects or design health insurance benefits, highway construction projects, safety regulations and investment in higher education. Students will learn the theoretical foundation of cost-benefit analysis, including strategies for valuation, discounting (NPV, IRR), measuring equity, and addressing risk and uncertainty. Emphasis is on the measurement of benefits and costs when evaluating public projects, programs or regulations. Students will also learn how policy makers and non-government organizations can use the technique to allocate resources and evaluate programs in many sectors.

Fall, Spring

027298