TY - BOOK AU - Keating,Barry AU - Keating,Maryann O. TI - Basic cost benefit analysis for assessing local public projects /Barry P. Keating and Maryann O. Keating T2 - Economics collection, SN - 9781631578823 AV - HD .B375 2017 PY - 2017/// CY - New York, New York (222 East 46th Street, New York, NY 10017) PB - Business Expert Press KW - Public works KW - Cost effectiveness KW - benefits ratio KW - cost benefit analysis (CBA) KW - cost effectiveness analysis KW - discount rate KW - economic efficiency KW - existence values KW - external or social benefits KW - external or social costs KW - externalities or spillovers KW - government failure KW - hedonic valuation KW - hypothetical contingent valuation KW - local government KW - market failure KW - net discounted benefits KW - positive time preference KW - present value of benefits KW - present value of costs KW - project evaluation KW - regulatory capture KW - rent seeking KW - sensitivity analysis KW - social welfare functions KW - standing KW - willingness to accept KW - willingness to pay KW - Electronic books N1 - 1. An introduction to cost-benefit analysis --; 2. Cost-benefit analysis and individual preferences --; 3. Time preference and the discount rate --; 4. Measuring costs and benefits --; 5. Shadow pricing --; 6. Potential pitfalls in cost benefit analysis --; 7. Introducing cost benefit analysis to the nonspecialist --; 8. Cost benefit analysis of proposed new regulations --; 9. Case study: contracting versus a municipal animal control shelter --; 10. Case study: cost benefit analysis for a forty acre industrial park intended to spawn economic development and jobs --; 11. Case study: establishing a recreational program for the disabled --; Appendix: some numerical background --; Notes --; Bibliography --; Index N2 - Cost benefit analysis (CBA) is often expected or required for government projects. On the state and local level, the technique is useful for assessing the worthiness of a specific policy proposal. The accounting and analysis of large-scale technical projects require specialized training; in this manual, we offer a nontheoretical introduction to CBA, accessible to readers without an advanced statistical or economic background. The book is designed as a how-to primer in the basics of CBA for local officials who actually evaluate proposals or merely interpret reports using CBA. A Reference List is provided for further study. There is a critical need for officials and the general public to question assumptions, biases, and omissions in proposals submitted by those advocating for certain projects. Tax revenue is limited and government debt at some point becomes unsustainable. CBA is rooted in and has little or no value apart from the economic concepts of cost and resource efficiency, but our goal here is not to stress underlying economic theory. Rather, this manual is designed to explain the correct use and interpretation of CBA, pointing out CBA's limitations and pitfalls. Properly employed, CBA is simply a method for assessing a proposal prior to a collective-choice decision. The CBA process uncovers and measures the intensity of values that residents place on certain services. It attempts to measure net benefits to be derived from a specific proposal relative to an alternative project or the default option of doing nothing. Because standard statistical packages, spreadsheets, and graphical analyses are now generally available, CBA, as a tool, has become more accessible for small projects on a local level. Case studies, presented in the final chapters of this book, represent typical proposals confronted by local officials. Included are instructions for using computer spreadsheets to build basic cost benefit models and an Appendix on the step-by-step process for discounting future costs and benefits. Completing this book will allow a student or local government decision maker to understand and construct a simple CBA model. They will also be able to evaluate more extensive CBA models for accuracy and shortcomings ER -