The purpose of this course is to examine the role of economics in evaluating public policies, projects and regulations. This course is designed to equip the students with the skills needed to interpret and advise on basic cost-benefit analysis and to enhance their ability to analyze policy problems, find creative solutions, and implement policies and programs effectively. This course aims to improve students’ analytical and intellectual skills through the study of Cost Benefit Analysis; presents approaches to deal with time, uncertainty, intangibles, and issues of equity.
Upon succesful completion of this course, a student will be able to
1. Explain the principles that inspire Welfare Economics, in particular the normative roots of the notion of economic efficiency.
2. Explain the principles behind the theory of market failure.
3. Interpret basic empirical examples of cost-benefit analysis and communicate the results of the to stakeholders.
4. Critically assess the advantages and limitations of using cost-benefit analysis to inform public policy.
5. Determine when a cost benefit analysis may be performed in a meaningful way and to perform basic project analyses.
6. Identify limitations in modeling assumptions, data, or political concerns that may compromise the validity of a cost-benefit analysis study.
7. Communicate effectively and clearly in written and oral formats.