PA5312

This class introduces students to cost-benefit analysis, the leading evidenced-based method for determining whether a government program or policy improves the well-being of society. Starting with the foundations of welfare economics, students learn how to monetize important benefits and costs associated with government activities. Topics include discounting future benefits and costs, the roles of standing and risk, ways of valuing human lives and other benefits that may be hard to value in dollar terms. Students will acquire skills needed to perform relevant calculations needed for the economic assessment of benefits relative to costs and the ability to critique the use of these methods regarding how they may advantage or disadvantage some members of society or particular types of policies. Policy areas include preventive interventions in social, health and education as well as applications in transportation and environmental policy.

Prerequisite: PA 5021 or other prior course in microeconomics.

012079