BCA shortcuts:
- Linear demand and supply are usually good approximations of nonlinear
demand and supply. The sign of the bias is known.
- Increases (decreases) in government expenditures are usually good
measures of costs (benefits). The price effects are usually small.
- Secondary market effects can usually be ignored. When there are price
effects, errors in primary market benefits and costs are systematically
offset by benefits and costs in secondary markets. When there are no price
effects, secondary market effects are either the "dual" choice problem or
insignificant.