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Cass R. Sunstein - One of the best experts on this subject based on the ideXlab platform.
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is Cost Benefit Analysis a foreign language
Quarterly Journal of Experimental Psychology, 2019Co-Authors: Cass R. SunsteinAbstract:Do people think better in a foreign language? In some ways, yes. There is considerable evidence to this effect, at least to the extent that they are less likely to rely on intuitions that can lead to serious errors. This finding reinforces, and makes more plausible, a central claim in regulatory policy, which involves the value of Cost-Benefit Analysis. In a sense, Cost-Benefit Analysis is a foreign language, and it reduces the risk that people will rely on intuitions that cause serious errors.
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Is Cost–Benefit Analysis a foreign language?:
Quarterly journal of experimental psychology (2006), 2018Co-Authors: Cass R. SunsteinAbstract:Do people think better in a foreign language? In some ways, yes. There is considerable evidence to this effect, at least to the extent that they are less likely to rely on intuitions that can lead to serious errors. This finding reinforces, and makes more plausible, a central claim in regulatory policy, which involves the value of Cost-Benefit Analysis. In a sense, Cost-Benefit Analysis is a foreign language, and it reduces the risk that people will rely on intuitions that cause serious errors.
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Cost-Benefit Analysis and the environment
Ethics, 2005Co-Authors: Cass R. SunsteinAbstract:In the United States, Cost-Benefit Analysis (CBA) is in the ascendancy. For over twenty years, American presidents have required agencies to perform CBA for major regulations; indeed, they have told agencies to regulate only if the Benefits of regulation justify its Costs. Congress has also shown considerable interest in CBA, most prominently in the Safe Drinking Water Act, which asks agencies to produce quantitative assessments of both Costs and Benefits. For their part, federal courts have adopted a series of principles that promote CBA, saying that if Congress has not been clear, agencies may consider Costs, take account of the substitute risks introduced by regulation, and exempt trivial risks from governmental control. In its enthusiasm for Cost-Benefit Analysis, the United States provides a sharp contrast to Europe, which has shown intense interest in a quite different organizing principle for environmental protection: the Precautionary Principle. According to the Precautionary Principle, regulation is required even in the face of scientific uncertainty—even if it is not yet clear that environmental risks are serious. A central point of the Precautionary Principle is to recognize the limitations of existing knowledge and to protect against harm that cannot yet be established as such. Cost-Benefit Analysis and the Precautionary Principle can lead in
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Cost-Benefit Analysis and the Environment
SSRN Electronic Journal, 2004Co-Authors: Cass R. SunsteinAbstract:This review-essay explores the uses and limits of Cost-Benefit Analysis in the context of environmental protection, focusing on three recent books: Priceless, by Frank Ackerman and Lisa Heinzerling; Cellular Phones, Public Fears, and A Culture of Precaution, by Adam Burgess; and Catastrophe: Risk and Response, by Richard A. Posner. The review-essay emphasizes three principal limitations on the use of Cost-Benefit Analysis. First, it is important to distinguish between the easy cases for Cost-Benefit Analysis, in which the beneficiaries of regulation pay all or almost all of its Cost, from the harder cases, in which the beneficiaries pay little for the environmental protection that they receive. In the harder cases, net welfare gains and distributional advantages are possible even if environmental regulation fails Cost-Benefit Analysis. Second, there are possible uses, in the environmental context, of maximin rather than Cost-Benefit Analysis, especially when regulators are attempting to control catastrophic risks where probabilities cannot be assigned. An Anti-Catastrophe Principle makes sense for such situations. Third, human beings are citizens, not merely consumers, and this point requires abandonment of the willingness to pay criterion in some contexts.
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Cognition and Cost-Benefit Analysis
The Journal of Legal Studies, 2000Co-Authors: Cass R. SunsteinAbstract:Abstract Cost‐Benefit Analysis is often justified on conventional economic grounds, as a way of preventing inefficiency. But it is most plausibly justified on cognitive grounds—as a way of counteracting predictable problems in individual and social cognition. Poor judgments, by individuals and societies, can result from certain heuristics, from informational and reputational cascades, from thinking processes in which Benefits are “on screen” but Costs are not, from ignoring systemic effects of one‐shot interventions, from seeing cases in isolation, and from intense emotional reactions. Cost‐Benefit Analysis serves as a corrective to these cognitive problems. In addition, it is possible to arrive at an incompletely theorized agreement on CostBenefit Analysis—an agreement that does not depend on controversial arguments (for example, the view that willingness to pay should be the basis for all social outcomes) and that can attract support from a variety of reasonable views. There is discussion as well of the...
Eric A. Posner - One of the best experts on this subject based on the ideXlab platform.
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Chevronizing Around Cost-Benefit Analysis
SSRN Electronic Journal, 2020Co-Authors: Jonathan S. Masur, Eric A. PosnerAbstract:The Trump administration’s efforts to weaken regulations are in tension with Cost-Benefit Analysis, which in many cases supports those regulations or otherwise fails to support the administration’s deregulatory objectives. Rather than attempting to justify its actions as a matter of policy preferences, the administration has responded by erecting procedural hurdles to new regulations, concocting flawed Cost-Benefit analyses, and interpreting statutes so as to evade Cost-Benefit Analysis. We evaluate these efforts, and conclude that the procedural hurdles may well be an effective means for slowing down regulation but not for eliminating existing regulations; that courts are unlikely to approve deregulation based on flawed Cost-Benefit analyses; and (most importantly) that the statutory interpretation route — which we call “Chevronizing around Cost-Benefit Analysis" — creates novel challenges for courts, as it pits traditional Chevron deference against a trend in favor of pushing agencies to regulate based on Cost-Benefit Analysis.
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Happiness Research and Cost‐Benefit Analysis
The Journal of Legal Studies, 2008Co-Authors: Matthew D. Adler, Eric A. PosnerAbstract:Abstract A growing body of research on happiness or subjective well‐being (SWB) shows, among other things, that people adapt to many injuries more rapidly than is commonly thought, fail to predict the degree of adaptation and hence overestimate the impact of those injuries on their SWB, and, similarly, enjoy small or moderate rather than significant changes in SWB in response to significant changes in income. Some researchers believe that these findings pose a challenge to Cost‐Benefit Analysis and argue that project evaluation decision procedures based on economic premises should be replaced with procedures that directly maximize SWB. This view turns out to be wrong or, at best, premature. Cost‐Benefit Analysis remains a viable decision procedure. However, some of the findings in the happiness literature can be used to generate valuations for Cost‐Benefit Analysis where current approaches have proved inadequate.
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Happiness Research and Cost-Benefit Analysis
SSRN Electronic Journal, 2007Co-Authors: Matthew D. Adler, Eric A. PosnerAbstract:A growing body of research on happiness or subjective well-being shows, among other things, that people adapt to many injuries more rapidly than is commonly thought, fail to predict the degree of adaptation and hence overestimate the impact of those injuries on their well-being, and, similarly, enjoy small or moderate rather than significant changes in well-being in response to significant changes in income. Some researchers believe that these findings pose a challenge to Cost-Benefit Analysis, and argue that project evaluation decision-procedures based on economic premises should be replaced with procedures that directly maximize subjective well-being. This view turns out to be wrong or, at best, premature. Cost-Benefit Analysis remains a viable decision-procedure. However, some of the findings in the happiness literature can be used to generate valuations for Cost-Benefit Analysis where current approaches have proven inadequate.
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controlling agencies with Cost Benefit Analysis a positive political theory perspective
University of Chicago Law Review, 2001Co-Authors: Eric A. PosnerAbstract:Cost-Benefit Analysis is analyzed using a model of agency delegation. In this model an agency observes the state of the world and issues a regulation, which the president may approve or reject. Cost-Benefit Analysis enables the president to observe the state of the world (in one version of the model), or is a signal that an agency may issue (in another version). The roles of the courts, Congress, and interest groups are also considered. It is argued that the introduction of Cost-Benefit Analysis increases the amount of regulation, including the amount of regulation that fails Cost-Benefit Analysis; that the president has no incentive to compel agencies to issue Cost-Benefit Analysis, because agencies will do so when it is in the president's interest, and otherwise will not do so; that presidents Benefit from Cost-Benefit Analysis even when they do not seek efficient policies; that agencies and their supporters ought to endorse Cost-Benefit Analysis, not resist it; and that Cost-Benefit Analysis reduces the influence of interest groups. Evidence for these claims is discussed. Finally, it is argued that courts should force agencies to conduct Cost-Benefit analyses in ordinary conditions, but that they should not force agencies to comply with them.
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Cost-Benefit Analysis
2001Co-Authors: Matthew D. Adler, Eric A. PosnerAbstract:Cost-Benefit Analysis is a widely used governmental evaluation tool, though academics remain skeptical. This volume gathers prominent contributors from law, economics, and philosophy for discussion of Cost-Benefit Analysis, specifically its moral foundations, applications and limitations. This new scholarly debate includes not only economists, but also contributors from philosophy, cognitive psychology, legal studies, and public policy who can further illuminate the justification and moral implications of this method and specify alternative measures. These articles originally appeared in the Journal of Legal Studies. Contributors: - Matthew D. Adler - Gary S. Becker - John Broome - Robert H. Frank - Robert W. Hahn - Lewis A. Kornhauser - Martha C. Nussbaum - Eric A. Posner - Richard A. Posner - Henry S. Richardson - Amartya Sen - Cass R. Sunstein - W. Kip Viscusi
Michael A. Livermore - One of the best experts on this subject based on the ideXlab platform.
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Cost-Benefit Analysis and Agency Independence
University of Chicago Law Review, 2014Co-Authors: Michael A. LivermoreAbstract:The presidential mandate that agency rule makings be subjected to CostBenefit Analysis and regulatory review is one of the most controversial developments in administrative law over the past several decades. There is a prevailing view that the role of Cost-Benefit Analysis in the executive branch is to help facilitate control of agencies by the Office of Information and Regulatory Affairs (OIRA). This Article challenges that view, arguing that Cost-Benefit Analysis in fact helps preserve agency autonomy in the face of oversight. This effect stems from the constraints imposed on reviewers by the regularization of Cost-Benefit-Analysis methodology and the fact that agencies have played a major role in shaping that methodology. The autonomy-preserving effect of Cost-Benefit Analysis has been largely ignored in debates over the institution of regulatory review. Ultimately, Cost-Benefit Analysis has ambiguous effects on agency independence, simultaneously preserving, informing, and constraining agency power.
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The Globalization of Cost-Benefit Analysis in Environmental Policy - The globalization of Cost-Benefit Analysis in environmental policy
2013Co-Authors: Michael A. Livermore, Richard L. ReveszAbstract:Part I: Introduction Foreword 1. Cost-Benefit Analysis Goes Global Michael A. Livermore, A.J. Glusman, and Gonzalo Moyano Part II: Valuation Issues 2. Cost-Benefit Analysis in Developing Countries: What's Different Euston Quah 3. The Benefit-Transfer Approach Lisa A. Robinson, and James K. Hammitt 4. Putting a Price on the Future of Our Children and Grandchildren Maria Damon, Kristina Mohlin, and Thomas Sterner 5. The Shape of Distributional Analysis Michael A. Livermore and Jennifer S. Rosenberg Part III: Institutional Matters 6. Changing Faces of Cost-Benefit Analysis: Alternative Institutional Settings and Varied Social and Political Contexts Jiunn-rong Yeh 7. Is There a Role for Cost-Benefit Analysis Beyond the Nation-State? Lessons from International Regulatory Cooperation Alberto Alemanno 8. The Diffusion of Regulatory Oversight Jonathan B. Wiener 9. The Role of the OECD in Capacity Building for Public Governance: Insights from the MENA-OECD Working Group on Regulatory Reform Miriam Allam Part IV: Case Studies in Pollution Control 10. Environmental Fuel Quality Improvements in Mexico: A Case Study of the Role of Cost-Benefit Analysis in the Decisionmaking Process Leonora Rojas-Bracho, Veronica Garibay-Bravo, Gretchen A. Stevens, and Georgina Echaniz-Pellicer 11. Healthcare Costs of Urban Air Pollutions in South Africa Anthony Leiman 12. Economic Costs of Air Pollution in Singapore Euston Quah, and Wai-Mun Chia 13. The Challenges of Estimating Compliance Costs in Developing Countries: Experiences from Brazil Emilio Lebre La Rovere, Martha Macedo de Lima Barata, and Amaro Olimpio Pereira Jr Part V: Case Studies in Protection of Natural Resource 14. Improving Cost-Benefit Analysis in the Assessment of Infrastructure Projects in the Brazilian Amazon Marcos Amend, Leonardo Fleck, and John Reid 15. A Cost-Benefit Analysis of Resettlement Policy in Southeast Asia Orapan Nabangchang 16. Cost-Beneft Analysis of Water Management Initiatives in China: A Case of Small, Multi-Purpose Reservoirs Shahbaz Mushtaq 17. Cost-Benefit Analysis of Water Projects in India Pawan Labhasetwar 18. The Role of Distributional Analysis in Cost-Benefit Analysis: A Case Study of Hydroelectric Projects in Panama Sarah Cordero 19. Assessing Potential Carbon Revenues from Reduced Forest Cover Loss in Liberia Jessica Donovan, Keith Lawrence, Christopher Neyor, Eduard Niesten, and Eric Werker Part VI: Paths Forward 20. Challenges and Opportunities Michael A. Livermore
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the globalization of Cost Benefit Analysis in environmental policy
2013Co-Authors: Michael A. Livermore, Richard L. ReveszAbstract:Part I: Introduction Foreword 1. Cost-Benefit Analysis Goes Global Michael A. Livermore, A.J. Glusman, and Gonzalo Moyano Part II: Valuation Issues 2. Cost-Benefit Analysis in Developing Countries: What's Different Euston Quah 3. The Benefit-Transfer Approach Lisa A. Robinson, and James K. Hammitt 4. Putting a Price on the Future of Our Children and Grandchildren Maria Damon, Kristina Mohlin, and Thomas Sterner 5. The Shape of Distributional Analysis Michael A. Livermore and Jennifer S. Rosenberg Part III: Institutional Matters 6. Changing Faces of Cost-Benefit Analysis: Alternative Institutional Settings and Varied Social and Political Contexts Jiunn-rong Yeh 7. Is There a Role for Cost-Benefit Analysis Beyond the Nation-State? Lessons from International Regulatory Cooperation Alberto Alemanno 8. The Diffusion of Regulatory Oversight Jonathan B. Wiener 9. The Role of the OECD in Capacity Building for Public Governance: Insights from the MENA-OECD Working Group on Regulatory Reform Miriam Allam Part IV: Case Studies in Pollution Control 10. Environmental Fuel Quality Improvements in Mexico: A Case Study of the Role of Cost-Benefit Analysis in the Decisionmaking Process Leonora Rojas-Bracho, Veronica Garibay-Bravo, Gretchen A. Stevens, and Georgina Echaniz-Pellicer 11. Healthcare Costs of Urban Air Pollutions in South Africa Anthony Leiman 12. Economic Costs of Air Pollution in Singapore Euston Quah, and Wai-Mun Chia 13. The Challenges of Estimating Compliance Costs in Developing Countries: Experiences from Brazil Emilio Lebre La Rovere, Martha Macedo de Lima Barata, and Amaro Olimpio Pereira Jr Part V: Case Studies in Protection of Natural Resource 14. Improving Cost-Benefit Analysis in the Assessment of Infrastructure Projects in the Brazilian Amazon Marcos Amend, Leonardo Fleck, and John Reid 15. A Cost-Benefit Analysis of Resettlement Policy in Southeast Asia Orapan Nabangchang 16. Cost-Beneft Analysis of Water Management Initiatives in China: A Case of Small, Multi-Purpose Reservoirs Shahbaz Mushtaq 17. Cost-Benefit Analysis of Water Projects in India Pawan Labhasetwar 18. The Role of Distributional Analysis in Cost-Benefit Analysis: A Case Study of Hydroelectric Projects in Panama Sarah Cordero 19. Assessing Potential Carbon Revenues from Reduced Forest Cover Loss in Liberia Jessica Donovan, Keith Lawrence, Christopher Neyor, Eduard Niesten, and Eric Werker Part VI: Paths Forward 20. Challenges and Opportunities Michael A. Livermore
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can Cost Benefit Analysis of environmental policy go global
2012Co-Authors: Michael A. LivermoreAbstract:The use of Cost-Benefit Analysis of environmental policy is spreading from the United States, where it has the longest tradition, to other parts of the globe. Already firmly rooted in Europe and other advanced economies, Cost-Benefit Analysis is becoming more prevalent in developing countries as a way to evaluate environmental regulation. The spread of Cost-Benefit Analysis raises questions about whether it is an appropriate tool for evaluating policy in these contexts, and what, if any, reforms are needed.This Essay discusses the challenges posed for Cost-Benefit Analysis as it spreads, and how it can evolve to meet those challenges. Cost-Benefit Analysis can be valuable, and its use is likely to continue to grow. Before it is likely to become widespread in many developing countries, however, several important reforms will have to be made. There are many practical challenges to its adoption, including political issues and problems of institutional capacity. In addition, certain features of Cost-Benefit Analysis as currently practiced will need to be reformed in light of the particular issues confronted by developing countries.
David L. Weimer - One of the best experts on this subject based on the ideXlab platform.
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Cost-Benefit Analysis
2017Co-Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. WeimerAbstract:The fourth edition of Cost-Benefit Analysis is an authoritative, market-leading textbook that provides a practical introduction to Cost-Benefit Analysis through problem solving. The text uses a consistent application of a nine-step framework for interpreting a Cost-Benefit Analysis. This edition has been fully revised, updated and re-organized to provide the material more effectively. It presents application over abstract theory and clear discussion over mathematics to appeal to a larger, more diverse audience.
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Cost‐Benefit Analysis and Public Policy - Cost‐Benefit Analysis and Public Policy
Cost-Benefit Analysis and Public Policy, 2009Co-Authors: David L. WeimerAbstract:Cost-Benefit Analysis AND PUBLIC POLICY . Preface 1. Introduction. David L. Weimer, Cost-Benefit Analysis and Public Policy 2. The Issue of Standing. Whittington, D., & MacRae, D., Jr. (1986). The issue of standing in Cost-Benefit Analysis. MacRae, D., Jr, & Whittington, D. (1988) Assessing preferences in Cost-Benefit Analysis: Reflections on rural water supply evaluation in Haiti. Trumbull, W. N. (1990). Who has standing in Cost-Benefit Analysis?. Whittington, D., & MacRae, D., Jr. (1990). Comment: Judgments about who has standing in Cost-Benefit Analysis. Trumbull, W. N. (1990). Reply to Whittington and MacRae. Zerbe, R. O., Jr. (1991). Comment: Does Benefit-Cost Analysis stand alone? Rights and standing. Discounting for Time. Brown, P. G. (1988). Policy Analysis, welfare economics, and the greenhouse effect. Kolb, J. A., & Scheraga, J. D. (1990). Discounting the Benefits and Costs of environmental regulations. Metcalf, G. E., & Rosenthal, D. (1995). The "new" view of investment decisions and public policy Analysis: An application to green lights and cold refrigerators. Moore, M. A., Boardman, A. E., Vining, A. R., Weimer, D. L., & Greenberg, D. H. (2004). "Just give me a number!" Practical values for the social discount rate. Risk and the "Value of Life". Moore, M. J., & Viscusi, W. K. (1988). Doubling the estimated value of life: Results from new occupational fatality data. Fisher, A., Chestnut, L. G., & Violette, D. M. (1989). The value of reducing risks of death: A note on new evidence. Knetsch, J. L. (1995). Assumptions, behavioral findings, and policy Analysis. Mrozek, J. R., & Taylor, L. O. (2002). What determines the value of life: A meta-Analysis. Hammitt, J. K. (2002). Understanding differences in estimates of the value of mortality risk. Krupnick, A. (2002). The value of reducing risk of death: A policy perspective. Non-Use Value as a Benefit Category. Rosenthal, D. H., & Nelson, R. H. (1992). Why existence value should not be used in Cost-Benefit Analysis. Kopp, R. J. (1992). Why existence value should be used in Cost-Benefit Analysis. Quiggin, J. (1993). Existence value and Benefit-Cost Analysis: A third view. Smith, V. K. (1993). Rethinking the rithmetic of damage assessment. CBA in Administrative and Legal Context. Boardman, A., Vining, A., & Waters, W. G., II (1993). Costs and Benefits through bureaucratic lenses: Example of a highway project. Krutilla, K. (2005). Using the Kaldor-Hicks tableau format for Cost-Benefit Analysis and policy evaluation. Kopp, R. J., & Smith, V. K. (1989). Benefit estimation goes to court: The case of natural resource damage assessment. Zerbe, R. O., Jr. (1998). Is Cost-Benefit Analysis legal? Three rules. Harrington, W., Morgenstern, R. D., & Nelson, P. (21--1). On the accuracy of regulatory Cost estimates. CBA Applications. Long, D. A., Mallar, C. D., & Thornton, C. V. D. (1981). Evaluating the Benefits and Costs of the Job Corps. Gomez-Ibanez, J. A., Leone, R. A., & O'Connell, S. A. (1983). Restraining auto imports: Does anyone win?. Kamerud, D. B. (1988). Benefits and Costs of the 55 MPH speed limit: New estimates and their implications. Vitaliano, D. F. (1992). An economic assessment of the social Costs of highway salting and the efficiency of substituting a new deicing material. Devaney, B., Bilheimer, L., & Schore, J. (1992). Medicaid Costs and birth outcomes: The effects of prenatal WIC participation and the use of prenatal care. Schwindt, R., Vining, A., & Globerman, S. (21--1). Net loss: A Cost-Benefit Analysis of the Canadian Pacific salmon fishery. Chen, G., & Warburton, R. N. (2006). Do speed cameras produce net Benefits? Evidence from British Columbia, Canada. Index 457
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Cost-Benefit Analysis: Concepts and Practice
1996Co-Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. WeimerAbstract:Part I: Overview 1. Introduction to Cost-Benefit Analysis 2. Conceptual Foundations of Cost-Benefit Analysis Part II: Fundamentals of Cost-Benefit Analysis 3. Basic Microeconomic Foundations of Cost-Benefit Analysis 4. Valuing Benefits and Costs in Primary Markets 5. Valuing Benefits and Costs in Secondary Markets 6. Discounting Benefits and Costs in Future Time Periods 7. Dealing with Uncertainty: Expected Value, Sensitivity Analysis, and the Value of Information 8. Option Price and Option Value 9. Existence Value 10. The Social Discount Rate Part III: Valuation of Impacts 11. Valuing Impacts from Observed Behavior: Demonstrations 12. Valuing Impacts from Observed Behavior: Direct Estimation of Demand Curves 13. Valuing Impacts from Observed Behavior: Other Revealed Preference Methods 14. Contingent Valuation: Using Surveys to Elicit Information About Costs and Benefits 15. Shadow Prices from Secondary Sources 16. Shadow Prices: Applications to Developing Countries Part IV: Related Methods and Accuracy 17. Cost-Effectiveness Analysis 18. Distributionally Weighted Cost-Benefit Analysis 19. How Accurate is CBA? A Selected Cost-Benefit Analysis Bibliography Name Index Subject Index
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Cost Benefit Analysis concepts and practice
1996Co-Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. WeimerAbstract:Cost-Benefit Analysis provides accessible, comprehensive, authoritative, and practical treatments of the protocols for assessing the relative efficiency of public policies. Its review of essential concepts from microeconomics, and its sophisticated treatment of important topics with minimal use of mathematics helps students from a variety of backgrounds build solid conceptual foundations. It provides thorough treatments of time discounting, dealing with contingent uncertainty using expected surpluses and option prices, taking account of parameter uncertainties using Monte Carlo simulation and other types of sensitivity analyses, revealed preference approaches, stated preference methods including contingent valuation, and other related methods. Updated to cover contemporary research, this edition is considerably reorganized to aid in student and practitioner understanding, and includes eight new cases to demonstrate the actual practice of Cost-Benefit Analysis. Widely cited, it is recognized as an authoritative source on Cost-Benefit Analysis. Illustrations, exhibits, chapter exercises, and case studies help students master concepts and develop craft skills.
Christine Suet Yee Mak - One of the best experts on this subject based on the ideXlab platform.
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New3 Cost Benefit Analysis
Normative Health Economics, 2006Co-Authors: Sardar M. N. Islam, Christine Suet Yee MakAbstract:As discussed in previous chapters, there are limitations in the existing methods of Cost Benefit Analysis. For economic evaluation of health programs to be useful and meaningful, certain adjustments are needed- Omission of extra-welfaristic elements in social Costs and social Benefits, inappropriate measures of Benefits, difficulties in measuring Benefits and a lack of proper integration of Cost Benefit Analysis methods of health programs with the underlying evaluation processes which make it difficult to understand how the Cost Benefit Analysis is being used for social choices, narrow the scope of Analysis. An evaluation method needs to be developed on the basis of the right and relevant principles of welfare economics and social choice theory (by explicating social preferences), so that it can test the economic and social efficiency of health programs, containing the Benefits and Costs which are measured adequately and appropriately. Extra-welfaristic considerations (such as equity, freedom, and so on) in ethics, incorporated in the integrated operational framework and methods of Cost Benefit Analysis, can then be applied in the evaluation.
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New3 Cost Benefit Analysis of PBS Medications
Normative Health Economics, 2006Co-Authors: Sardar M. N. Islam, Christine Suet Yee MakAbstract:In this chapter, six medications are selected for hypothetical Cost Benefit Analysis under the type of criteria listed under the Pharmaceutical Benefit Advisory Committee (PBAC) submission guidelines, the standard approach of financial Cost Benefit Analysis and the new3 Cost Benefit Analysis under the normative social choice approach of new3 welfare economics.
