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Some Norwegian Politicians' Use of Cost-Benefit Analysis

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Abstract

Members of the Norwegian Parliament were interviewed about the decision process concerning national road investments. Most of them found cost-benefit analysis useful, but apparently not as a device for ranking projects. Rather, the cost-benefit ratio was used to pick project proposals requiring political attention among the large number of projects included in the plan. However, information about project-related local conflicts seemed to be used much more extensively for this latter purpose. Attitudes towards cost-benefit analysis varied along the left-right political axis. These findings are shown to be consistent with a hypothesis that politicians rationally maximize subjective perceptions of social welfare.

Suggested Citation

  • Karine Nyborg, 1996. "Some Norwegian Politicians' Use of Cost-Benefit Analysis," Discussion Papers 169, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:169
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    Keywords

    Road investments; cost-benefit analysis; political decision process.;
    All these keywords.

    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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