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Some Norwegian Politicians' Use of Cost-Benefit Analysis

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  • Nyborg, Karine

Abstract

Members of the Norwegian Parliament were interviewed about their use of cost-benefit analysis in the political treatment of a road investment plan. Most respondents found the cost-benefit ratio useful as a screening device to pick projects requiring closer political attention but few seemed to actually use it to rank projects. Attitudes towards cost-benefit analysis varied along the left-right political axis, with politicians to the left being the most skeptical. These findings are consistent with a hypothesis that politicians rationally maximize subjective, but different, perceptions of social welfare. Copyright 1998 by Kluwer Academic Publishers

Suggested Citation

  • Nyborg, Karine, 1998. "Some Norwegian Politicians' Use of Cost-Benefit Analysis," Public Choice, Springer, vol. 95(3-4), pages 381-401, June.
    • Handle: RePEc:kap:pubcho:v:95:y:1998:i:3-4:p:381-401
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    1. repec:eee:epplan:v:69:y:2018:i:c:p:109-117 is not listed on IDEAS
    2. Karine Nyborg & Inger Spangen, 2000. "Cost-Benefit Analysis and the Democratic Ideal," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 83-93.
    3. Jan Anne Annema, 2013. "The use of CBA in decision-making on mega-projects: empirical evidence," Chapters,in: International Handbook on Mega-Projects, chapter 13, pages 291-312 Edward Elgar Publishing.
    4. repec:eee:trapol:v:59:y:2017:i:c:p:181-195 is not listed on IDEAS
    5. Michael Makowsky & Richard Wagner, 2009. "From scholarly idea to budgetary institution: the emergence of cost-benefit analysis," Constitutional Political Economy, Springer, vol. 20(1), pages 57-70, March.
    6. repec:kap:transp:v:44:y:2017:i:5:d:10.1007_s11116-016-9697-3 is not listed on IDEAS
    7. Bert van Wee & Jan Anne Annema & Hugo Priemus, 2013. "Model building for infrastructure initiatives," Chapters,in: Handbook of Research Methods and Applications in Urban Economies, chapter 17, pages 423-441 Edward Elgar Publishing.
    8. Salvador Bertomeu & Antonio Estache, 2016. "Unbundling Political and Economic Rationality: a Non-Parametric Approach Tested on Spain," Working Papers ECARES ECARES 2016-17, ULB -- Universite Libre de Bruxelles.
    9. Jussila Hammes , Johanna, 2017. "The impact of career concerns and cognitive dissonance on bureaucrats’ use of cost-benefit analysis," Working papers in Transport Economics 2017:5, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    10. Asplund, Disa & Eliasson, Jonas, 2016. "Does uncertainty make cost-benefit analyses pointless?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 195-205.
    11. Nyborg, Karine, 2014. "Project evaluation with democratic decision-making: What does cost–benefit analysis really measure?," Ecological Economics, Elsevier, vol. 106(C), pages 124-131.
    12. Sandberg Hanssen, Thor-Erik & Jørgensen, Finn, 2015. "Transportation policy and road investments," Transport Policy, Elsevier, vol. 40(C), pages 49-57.
    13. Mouter, Niek & Annema, Jan Anne & Wee, Bert van, 2013. "Attitudes towards the role of Cost–Benefit Analysis in the decision-making process for spatial-infrastructure projects: A Dutch case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 1-14.
    14. Mouter, Niek, 2017. "Dutch politicians’ attitudes towards Cost-Benefit Analysis," Transport Policy, Elsevier, vol. 54(C), pages 1-10.

    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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