(财政学罗森第九版英文课件)Chap008Cost-Benefit Analysis.ppt

* 1st click – left-hand side text line-by-line 2nd click - axes and labels, D, S, A, d, and g 3rd click – S’, A1 * * * * * * * * 8-* 8-* CHAPTER 8 Cost-Benefit Analysis Copyright ? 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Projecting Present Dollars into the Future R0 = $1000 R1 = $1000*(1+.01) = $1010 R2 = $1010*(1+.01) = $1020.10 R2 = $1000*(1+.01)2 = $1020.10 RT = R0*(1+r)T Projecting Future Dollars into the Present R0 = $1000 R1 = $1000*(1+.01) = $1010 R2 = $1010*(1+.01) = $1020.10 R2 = $1000*(1+.01)2 = $1020.10 RT = R0*(1+r)T R0 = RT/(1+r)T Present Value discount rate discount factor Present Value of a Stream of Money Inflation Private Sector Project Evaluation Annual Net Return PV Year RD Advertising R = RD Advertising 0 $1,000 -$1,000 0 $150 $200 1 600 0 0.01 128 165 2 0 0 0.03 86 98 3 550 1,200 0.05 46 37 0.07 10 -21 Admissible Preferable Present Value Criteria Internal Rate of Return Project Year 0 Year 1 ρ Profit PV X -$100 $110 10% $4 3.77 Y -$1,000 $1,080 8% $20 18.87 Benefit-Cost Ratio Benefit-cost ratio = B/C Problems with the Benefit-Cost Ratio Method B C B/C I $250 $100 2.5 II $200 $100 2.0 I: Subtract $40 mistake from B $210 $100 2.1 I: Add $40 mistake to C $250 $140 1.79 Discount Rate for Government Projects Returns in Private Sector Social Discount Rate Paternalism Market Inefficiency Discounting and the Economics of Climate Change Government Discounting in Practice Valuing Public Benefits and Costs Market Prices Adjusted Market Prices Shadow price Monopoly Taxes Unemployment Consumer Surplus Pounds of avocados per year Price per pound of avocados Da Sa d A0 Sa’ $1.35 $2.89 b c g A1 e Inferences from Economic Behavior The Value of Time The Value of Life Lost earnings Probability of death Valuing Intangibles Subverting cost-benefit exercises Reveal limits on intangibles Cost-effectiveness analysis Games Cost-Benefit Analysts Play The Chain-Reaction Game The Labor Game The Double-Counting Game Dis