Accounting for the Distribution of Benefits and Costs in Benefit–Cost Analysis
| Autor: | James K. Hammitt |
|---|---|
| Přispěvatelé: | Toulouse School of Economics (TSE), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Department of Economics, Harvard University, Harvard University [Cambridge], ANR-17-EURE-0010,CHESS,Toulouse Graduate School défis en économie et sciences sociales quantitatives(2017) |
| Rok vydání: | 2020 |
| Předmět: |
Social welfare function
Economics and Econometrics JEL: I - Health Education and Welfare/I.I3 - Welfare Well-Being and Poverty/I.I3.I31 - General Welfare Well-Being Public Administration Sociology and Political Science Distribution (economics) Distributional weights Numeraire JEL: H - Public Economics/H.H4 - Publicly Provided Goods/H.H4.H40 - General 0502 economics and business Evaluation methods Economics Econometrics 050207 economics Numéraire Cost–benefit analysis JEL: D - Microeconomics/D.D3 - Distribution/D.D3.D30 - General business.industry 05 social sciences [SHS.ECO]Humanities and Social Sciences/Economics and Finance Ranking JEL: D - Microeconomics/D.D6 - Welfare Economics/D.D6.D61 - Allocative Efficiency • Cost–Benefit Analysis JEL: A - General Economics and Teaching/A.A1 - General Economics/A.A1.A13 - Relation of Economics to Social Values JEL: D - Microeconomics/D.D6 - Welfare Economics/D.D6.D63 - Equity Justice Inequality and Other Normative Criteria and Measurement Normative 050202 agricultural economics & policy business |
| Zdroj: | Journal of Benefit-Cost Analysis Journal of Benefit-Cost Analysis, 2021, 12 (1), pp.64-84. ⟨10.1017/bca.2020.29⟩ |
| ISSN: | 2152-2812 2194-5888 |
| DOI: | 10.1017/bca.2020.29 |
| Popis: | Benefit–cost analysis (BCA) is often viewed as measuring the efficiency of a policy independent of the distribution of its consequences. The role of distributional effects on policy choice is disputed; either: (a) the policy that maximizes net benefits should be selected and distributional concerns should be addressed through other measures, such as tax and transfer programs or (b) BCA should be supplemented with distributional analysis and decision-makers should weigh efficiency and distribution in policy choice. The separation of efficiency and distribution is misleading. The measure of efficiency depends on the numéraire chosen for the analysis, whether monetary values or some other good (unless individuals have the same rates of substitution between them). The choice of numéraire is not neutral; it can affect the ranking of policies by calculated net benefits. Alternative evaluation methods, such as BCA using a different numéraire, weighted BCA, or a social welfare function (SWF), may better integrate concerns about distribution and efficiency. The most appropriate numéraire, distributional weights, or SWFs cannot be measured or statistically estimated; it is a normative choice. |
| Databáze: | OpenAIRE |
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