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This Element on cost-benefit analysis provides a summary of recent theoretical and empirical developments and summarizes state-of-the-art stated-preference and revealed-preference valuation methods. The Element discusses how to assess small (or marginal) as well as large (or non-marginal) projects that have a significant impact on prices and/or other economic variables. It also discusses distortions like taxes, market power, and sticky prices. In addition, risk/uncertainty is considered. A novel feature is the elaboration on flexible evaluation rules for reasonably small projects. Conventional point-estimates of projects should be used with care, because they typically give biased results.
This one has been devised to evaluate the cost versus the benefits in your project proposal. It begins with a list, as so many processes do.
A CBA involves measurable financial...
Cost-benefit analysis (CBA), sometimes also called benefit-cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings (for example, in transactions, activities, and functional business requirements).
Cost-benefit analysis is a way to compare the costs and benefits of an intervention, where both are expressed in monetary units. Both CBA and cost-effectiveness analysis (CEA) include health outcomes.