Sean Milton Duncan's Library tagged cba → View Popular

28 Sep 06

25 Sep 06

A really good intro-level overview of cost-benefit analysis - eidosabi on 2006-09-25

The increase in benefits reulting from an increase in

consumption is the sum of the marginal benefit times each incremental

increase in consumption.
The relationship between the market price and

the quantity consumed is called the demand schedule
5 more annotations...
- the valuation
  
  of the benefit of cleaner air could be established by finding how much less
  
  people paid for housing in more polluted areas which otherwise was identical
  
  in characteristics and location to housing in less polluted areas
- The value of time should be that which the public reveals
  
  their time is worth through choices involving tradeoffs between time and
  
  money.
- The valuation of benefits and costs should reflect preferences revealed
  
  by choices which have been made.
- discounted present value of that benefit of the project
- the discounted value or present
  
  value of a dollar available t years in the future