Cost-Benefit Analysis offers a clear and practical guide to evaluating the efficiency of public policies. It builds its foundation on key microeconomic concepts while providing an accessible discussion of crucial topics with minimal reliance on complex mathematics. The book is designed for students from diverse backgrounds, enabling them to develop strong conceptual insights into public policy assessment. In this 5th edition, contemporary research is woven into a reorganized structure that enhances understanding for both students and practitioners. The authors present detailed treatments of time discounting, managing uncertainty through methods such as expected surpluses and option pricing, and employing Monte Carlo simulations alongside other sensitivity analyses. They also discuss revealed and stated preference approaches, including contingent valuation. Engaging illustrations, exhibits, exercises, and eight new case studies further refine the reader's mastery of cost-benefit analysis, solidifying its status as a trusted resource in the field.
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