This course covers the fundamentals of cost-benefit analysis, an important element of policy analysis,and introduces cost-effectiveness analysis as a method of deciding between alternative projects/policies/courses of action. The goal is for students to be able to understand basic issues related to cost-benefit, common critiques of this approach, how benefits and costs are calculated, the appropriate use of discount rates, and common approaches to uncertainty and risk.Learning Objectives:
Upon successful completion of this course, you should be able to:
- Understand the key elements of a cost-benefit analysis including computation of costs, computation of benefits, discounting, and uncertainty and risk.
- Address the common critiques of the approach.
- Be able to discuss the strengths and weaknesses of a specific cost-benefit analysis.
Students must have completed EITHER 90-709 Intermediate Economic Analysis OR 90-710 Applied Economic Analysis, as well as 90-711 Empirical Methods