Take Home Final Exam (80%)

Go to the CBO website:

Click on cost estimates:

Conduct a benefit cost analysis following the basic steps of BCA (from chapter 1):

  1. Specify the set of alternative projects [likely to be specified in the bill]

  2. Decide whose benefits and costs count (standing) [i.e., aggregation rules]

  3. Catalog the impacts and select measurement indicators [qualitative benefits and costs, theory]

  4. Predict the impacts quantitatively over the life of the project

  5. Monetize (attach dollar values to) all impacts [use elasticities, linear approximation, benefit transfer, CBO estimates of costs]

  6. Discount benefits and costs to obtain present values [use more than one rate and justify your choice]

  7. Compute the net present value of each alternative

  8. Perform sensitivity analysis

  9. Make a recommendation

Write a report