IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-319-52827-4_9.html
   My bibliography  Save this book chapter

Cost Benefit Analysis

In: Statistical Tools for Program Evaluation

Author

Listed:
  • Jean-Michel Josselin

    (University of Rennes 1)

  • Benoît Le Maux

    (University of Rennes 1)

Abstract

Cost benefit analysis compares policy strategies not only on the basis of their financial flows but also on the basis of their overall impact, be it economic, social, or environmental (Sect. 9.1). To do so, the approach relies on the concepts of Pareto-optimality and Kaldor-Hicks compensation to assess whether public programs are globally beneficial or detrimental to society’s welfare (Sect. 9.2). All effects must be expressed in terms of their equivalent money values and discounted based on how society values the well-being of future generations (Sect. 9.3). Using conversion factors, the cost benefit analysis methodology also ensures that the price of inputs and outputs used in the analysis reflects their true economic values (Sect. 9.4). Last, the analysis ends with a deterministic or probabilistic sensitivity analysis which examines how the conclusions of the study change with variations in cash flows, assumptions, or the manner in which the evaluation is set up (Sects. 9.5 and 9.6). One may also employ a mean-variance analysis to compare the performance and risk of each competing strategy (Sect. 9.7). Applications and examples, provided on spreadsheets and R-CRAN, will enable the reader to take the methodology in hand.

Suggested Citation

  • Jean-Michel Josselin & Benoît Le Maux, 2017. "Cost Benefit Analysis," Springer Books, in: Statistical Tools for Program Evaluation, chapter 9, pages 291-324, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-52827-4_9
    DOI: 10.1007/978-3-319-52827-4_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-319-52827-4_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.