PAM 3300

Cost-Benefit Analysis

Course Description

Course information provided by the Courses of Study 2020-2021.

In-depth treatment of methods for public policy analysis. The course focuses on cost-benefit analysis, a method grounded in microeconomics and applied welfare economics. Topics include market failures; willingness to pay; opportunity costs; discounting future costs and benefits; handling uncertainty and risk; incorporating distributional impacts; methods to value a statistical life; and methods to value environmental quality and other non-market goods. Numerous examples are taken from a variety of policy areas, including crime, education, health, welfare, and regulation.

When Offered Spring.

Prerequisites/Corequisites Prerequisite: PAM 2000, PAM 2300.

Distribution Category (SBA-HE)

• Explain how to conduct cost-benefit analysis of government projects.
• Calculate the discounted present value of future costs and benefits.
• Evaluate distributional effects of public policies.
• Apply uncertainty and risk to policy analysis.
• Explain how to evaluate non-market activities such as environmental policy and the value of a statistical life.

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