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New PDF release: Introduction to Cost-Benefit Analysis: Looking for

By Gines de Rus

ISBN-10: 184844852X

ISBN-13: 9781848448520

This obtainable and non-technical introductory textual content offers the crucial tools and key strategies inquisitive about knowing and using cost-benefit research, and demonstrating how one can review even if an funding undertaking or coverage idea will give a contribution to extend social welfare. Gines de Rus accommodates the newest pondering on concerns reminiscent of the remedy of possibility and uncertainty, and the significance of institutional preparations in making sure the proper use of the method. those matters are mixed seamlessly into the suitable case reports, instead of taken care of as not obligatory extras, as in a few texts. The case reports themselves are on the centre of present debate and controversy, together with the necessity for high-speed rail traces and the case for the privatisation of water offer. creation to Cost-Benefit research is meant as a graduate and complicated undergraduate textbook. however, economists and different practitioners occupied with the commercial evaluate of tasks also will locate the booklet super important.

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Additional info for Introduction to Cost-Benefit Analysis: Looking for Reasonable Shortcuts

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This shows that applying general rules such as ‘taxes should be ignored because they are income transfers’ can sometimes be misleading. When the new quantity is not diverted from other activities or, if it is, these activities are taxed at a different rate, the indirect tax (wholly or partially) is a benefit in the same sense as profits or consumer surplus. 5 WINNERS AND LOSERS Virtually all investment projects and public policies unevenly affect the different groups of individuals that compose the society.

These reasons include access to wider markets, the availability of a more specialized labour market that matches the needs of firms, and the access to technologies and the production processes of firms in the area. There is empirical evidence of the positive effect of a higher effective density on productivity, understanding effective density as an indicator of the degree of agglomeration, such as employment in the area and its surrounding areas (weighted by the generalized cost of transport), so that it appears that an increase in effective density increases the average productivity of the area.

If the calculation of the benefit is realized through the change in willingness to pay and the use of resources, we have a reduction in the cost of producing the initial quantity without the project and an increase in the willingness to pay minus the cost of the resources used in the new production. Applying the rule of a half, the change in consumer surplus (CS) can be expressed as: 32 Introduction to cost–benefit analysis 1 DCS 5 (p0 2 p1) (x0 1 x1) . 16) As the price is equal to the unit cost plus the tax, and the tax does not change: 1 DCS 5 (c0 2 c1) (x0 1 x1) .

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Introduction to Cost-Benefit Analysis: Looking for Reasonable Shortcuts by Gines de Rus


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