Applied welfare econ cost benefit analysis ch0

Chapter 0Organization session Applied Welfare Econ & Cost Benefit Analysis... The objectives Cost Benefit Analysis  Improving your knowledge about Welfare Economics and the ethical an

Chapter 0

Organization session

Applied Welfare Econ & Cost Benefit Analysis

 The prof

 The students

 The material

 The textbooks

 The aids

 The way to do it right!

 The grading

The students

 Names?

 Why are you here?

 What are you going to do next?

 When did you take Microeconomics last?

The objectives

 Cost Benefit Analysis

 Improving your knowledge about Welfare

Economics and the ethical and normative

foundations of Economics

 To equip you with the skills needed to interpret and

advise on basic cost-benefit analysis

 To improve your capacity to critically assess

instances of public policy

The objectives

 understand the principles behind the theory of market failure

and its regulation

 interpret basic empirical examples of cost-benefit analysis

and communicate the results of the to stakeholders

 critically assess the advantages and limitations of using

cost-benefit analysis to inform public policy

 determine when a cost benefit analysis may be performed in a

meaningful way

 perform basic project analyses

 identify limitations in modeling assumptions, data, or

political concerns that may compromise the validity of a cost-benefit analysis study

The textbooks

 Boardman, Anthony E., David H Greenberg,

Aidan R Vining, and David L Weimer Cost-Benefit Analysis: Concepts and Practice 3rd ed., (Upper Saddle River, NJ: Pearson

Prentice Hall, 2006)

The textbooks

 We will use other books from time to time

and suggest additional readings

The aids

 course outline and online course

schedule on website

 PowerPoint presentations and or

class notes online

 Home assignments

The aids

frequently

continuously

The way to get it right

 Reading the chapters before coming to class

 Taking useful notes in class or annotating

over the printouts from my website

 Going back to the book and the readings after

the class

 Coming to see me to solve doubts

 Doing the home assignments

The way to get it right

 There is no way to pass this on swoting

 Trying to catch up on the last two weeks is

not going to work

 The way to understanding the material is by

doing the reading as we learn it

 Ask me if you need help!

The grading system

(Your worst quiz will be 10% and the best quiz will be 15%)

 Home assignments 15%

If you miss a quiz, the weight will be reallocated

towards the final exam Late submissions of

assignments will be penalized at the rate of 10% per day up to the day when the solutions are posted.

 Any questions?

 Any suggestions?

 Any complaints?

 Introduction to CBA and Welfare Economics

 Get the book and read the first chapter