Cost-Benefit Analysis, continuation course

Aim

On completion of the course, the student should be able to: - account for the parts of micro and welfare theory that socioeconomic profitability calculations are based on, - account for the use of socioeconomic profitability calculations in practice, - critically review and be able to carry out a socioeconomic profitability calculation, - apply methods for estimating income and cost items for effects, in cases both with and without a market price, - analyse the problems and weaknesses that may be associated with socioeconomic profitability calculations.

Content

The course covers basic theory and realia about: - Welfare theory background - Procedures for performing socioeconomic calculations in theory and practice - Valuation of marketed goods and services in perfect markets and in cases of market imperfections or taxes/grants. - Effects on secondary markets and indirect effects - Discounting, time horizon, risk and uncertainty - Methods for evaluating utility and costs when there are no market prices available i.e. revealed preferences methods and stated preferences methods, respectively - Empirical applications within different fields - Issues and limitations of socioeconomic profitability calculations.