CostBenefitAnalysis(2003版)课程.pptVIP

Cost-Benefit Analysis Chapter 11 Contents Contents Cost-Benefit Analysis 1,How should the government decide whether or not to pursue a particular project ? The theory of welfare economics provides a framework for deciding:Evaluate the social welfare function before and after the project, and see whether social welfare increase.If it does,then do the project. 2,This method is correct, but not very useful.However,welfare economics does provide the basis for cost-benefit analysis(a set of practical procedures for guiding public expenditure decision.) Cost-benefit analysis is the practical use of