Some issues in the application of benefit–cost analysis (BCA) remain contentious. Although a strong conceptual case can be made for taking account of the marginal excess tax burden (METB) in conducting BCAs, it is usually excluded. Although a strong conceptual case can be made that BCA should...

Whose costs and benefits should count in cost-benefit analysis (CBA)? This is an important practical question requiring answers for analysts because most government agencies offer only permissive or vague guidance. Drawing primarily on foundational CBA principles, we present a conceptual...

In assessing existing or proposed public policies, analysts often need shadow price estimates for one or two key items - for example, the value of a human life, the cost of various types of injuries, the cost of a robbery or the value of an hour of travel time saved. This paper provides...

A major reason the quality of cost-benefit analysis (CBA) varies widely is inconsistent use of the social discount rate (SDR). This article offers guidance about the choice of the SDR. Namely, we recommend the following procedures: If the project is intragenerational (does not have effects...