Cost-Benefit Analysis

Central topics: The difference between private and social profitability. General principles for calculating economic efficiency and costs of projects. Treatment of risk, uncertainty and time. Cost-benefit analysis and political decision-making. Distributional effects of public actions.

Introduction to the fundamental principles of cost-benefit analysis. The students should be capable of implementing and using this type of analysis as a tool of evaluating public effort.

Lectures and practial assignments. One approved compulsory term paper.