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Cost Benefit Analysis And Its Uses
Part one of term paper
CBA and Injustice, section 10.5. The use of cost benefit analysis as a tool to determine public policy has many shortcomings we would prefer to avoid. The topic of this section is the lack of justice inherent to CBA and comparing it to other types of measuring systems.
The Pareto Criterion is based on the idea that a policy is acceptable i ...
Part two of term paper ... the Pareto Criterion.
The next guideline to be discussed is that of the Kaldor-Hicks principle. Using Kaldor-Hicks a policy is justified if the overall effect if a net gain. So if I gain three dollars and you loose one dollar the policy would net us one dollar. In theory those who gain could repay those whom loose and still have some left over. Important in this theory is that it is possible for the gainers to repay the losers, not that it is required. The problem with this theory is that a ...
Word count: 720 | Approximate pages: 3
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