Cost Benefit Analysis is the principal tool for project and policy evaluation in the public sector. Given government regulations, cost benefit evaluations are critical for many private sector activities. Real estate developers, manufacturing firms, employers of all types are required to provide evaluations of environmental impacts and of urban impacts for their proposed projects. They too must engage in cost benefit analysis, in the valuation of social benefits and costs. Government analysts, consultants, and private firms regularly carry out cost benefit analyses for major investments – bridges, roads, transit systems, convention centers, dams – as well as for regulatory activities. Topics include: conceptualization of Costs and Benefits of social projects, identifying costs and benefits, issues related to prices, shadow prices, exchange rate/shadow exchange rate, valuing environmental externalities, cost-effectiveness analysis, risk and sensitivity analysis. Monti-Carlo simulation of risks. Example includes economic valuation of social sector projects like education, transportation, etc.
||ECO 301, ECO 349