New Foundations of Cost-Benefit Analysis
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New Foundations of Cost-Benefit Analysis by Matthew D. Adler
Book DescriptionCost-benefit analysis (CBA) has been an important policy tool of government since the 1980s, when the Reagan administration ordered that all major new regulations be subjected to a rigorous test of whether their projected benefits would outweight their costs. Not surprisingly, CBA has been criticized by many who claim that it neglects, especially on the benefit side, important values that are hard to measure. In this book, the authors reconceptualize cost-benefit analysis, arguing that its objective should be overall well-being rather than economic efficiency. They show why the link between preferences and well-being is more complicated than economists have thought. Satisfying a person's preference for some outcome is welfare-enhancing only if he or she is self-interested and well-informed. Also, cost-benefit analysis is not a super-procedure but simply a way to identify welfare-maximizing policies. A separate kind of analysis is required to weigh rights and equal treatment. This book not only places cost-benefit analysis on a firmer theoretical foundation, but also has many practical implications for how government agencies should undertake cost-benefit studies.
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Book DetailsISBN: 9780674022799
(235mm x 155mm x 23mm)
Imprint: Harvard University Press
Publisher: Harvard University Press
Publish Date: 29-Sep-2006
Country of Publication: United States
Books By Author Matthew D. Adler
Oxford Handbook of Well-Being and Public Policy, Hardback (June 2016)
What are the best tools for designing governmental policy in light of human well-being? The Handbook provides a comprehensive treatment of this topic, drawing on economics, philosophy, and psychology.
Cost-benefit Analysis, Paperback (June 2001)» View all books by Matthew D. Adler
Cost-benefit analysis is a widely used governmental evaluation tool, though academics remain skeptical. This volume gathers prominent contributors for discussion of cost-benefit analysis, specifically its moral foundations, applications and limitations.
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Author Biography - Matthew D. Adler
Matthew D. Adler is Professor of Law at the University of Pennsylvania. Eric A. Posner is Professor of Law at the University of Chicago and the author of Law and Social Norms (Harvard).
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