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Cost-Benefit Analysis


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Table of Contents

1. Introduction 2. Efficiency Norm: Pareto Optimality 3. Economic Efficiency and the Market Mechanism 4. Economic Efficiency and Public Goods 5. Economic Efficiency in the Presence of Externalities 6. Collective Decision Making 7. Principles of Cost-Benefit Analysis 8. Allocational Effects of Public Projects 9. Measuring Costs and Benefits 10. Nonmarket Valuation 11. Investment Criteria and Project Selection 12. The Choice of Discount Rate 13. Income Distribution as an Evaluation Criterion 14. Applications of Cost-Benefit Analysis 15. Evaluation Issues in Environmental Studies 16. Evaluation Studies: Health Care 17. CBA in a Developing Country Context

About the Author

Tevfik F. Nas is professor of economics at the University of Michigan-Flint.


Nas has been able to accomplish a difficult task - providing an understandable welfare economics foundation for those new to the subject and enough detail to make sure that these individuals are able to apply CBA to complex allocation problems such as climate change policy. All policy makers should read the book to better understand the power of CBA to address efficiency in exchange, production and allocation. -- Wade Martin, California State University, Long Beach
Benefit-Cost analysis is one of the most powerful economic tools for improving efficiency in government spending, but it is too little known and understood by both citizens and government decision-makers. In this second edition of his important book, Tevfik Nas provides a highly readable overview of the theory and method of selecting public investments that provide the largest return for taxpayers and the general population. The applications are particularly useful as illustrations of the potential of the benefit-cost approach. -- Henry Levin, Director, National Center for the Study of Privatization in Education, Teachers College, Columbia University

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