ECON361 Lecture Notes - Lecture 1: Sensitivity Analysis, Microeconomics
7 Dec 2017
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Document Summary
It is a policy assessment method that quantifies the value of policy consequences (usually called impacts) in monetary terms to all member of society. It is a key application of microeconomics and (cid:862)e(cid:272)o(cid:374)o(cid:373)i(cid:272)(cid:863) thi(cid:374)ki(cid:374)g: allocate resources in an efficient way: there is a strong emphasis on the analysis of costs and benefits. Useful to show whether recourses should be used on a program or project: ex post cba: Provides information about the particular class of intervention. Ex post studies are more accurate than in medias res studies. In medias res cba: conducted during the intervention: comparative cba: compares the ex ante predictions to ex post results for the same project, the costs of cba studies, time: range anywhere from a day, month or even years. Guardians are often found in central budgetary agencies. Ignores non-financial social benefits (time saved, lives, etc. ) Likes to use high discount rates (changes the value of future benefits and costs)
