ECO 3660. Benefit-Cost Analysis

Fall 2007 | Calendar

TR 9:30-10:45, Raley Hall 1012

Instructor: John Whitehead
Office: Raley Hall 3094
Office Hours: MW 9-11, 2-4; appointment, open door
Phone: 262-6121 (office), 262-2148 (department), 773-5049 (cell)
Fax: 262-6105
e-mail: [email protected]

URL: http://www.appstate.edu/~whiteheadjc/ECO3660/Fall07

Last Update: 11/29/2007

Catalog Description

The study of the evaluation of competing public policy alternatives. The purpose of benefit-cost analysis is to inform government decision-making and facilitate the more efficient allocation of scarce resources. This course introduces the basic theory and principles of benefit-cost analysis and examines applications of the methodology. Prerequisite: ECO 2030.

Textbook and Reading Assignments

Cost-Benefit Analysis, 4e, Boardman, Greenberg, Vining and Weimer

Course Outline / Reading Assignments

  1. Introduction (Chapter 1, pp. 1-17)
  2. Conceptual Foundations (Chapter 2, pp. 26-33, 35-39, 41-46)
  3. Microeconomic Foundations (Chapter 3, pp. 51-61)
  4. Primary Markets (Chapter 4, pp. 73-98, 103-106)
  5. Secondary Markets (Chapter 5, pp. 112-120)
  6. Discounting (Chapter 6, pp. 131-140, 145, 146-151), (Chapter 10, pp. 236-238, 247-253, 245-246, 258-261)
  7. Dealing with Uncertainty (Chapter 7 pp. 165-171, 175-184)
  8. Valuing Impacts from Observed Behavior: Demonstrations (Chapter 11, pp. 279-285)
  9. Valuing Impacts from Observed Behavior: Direct Estimation of Demand Curves (Chapter 12, pp. 314-329, Appendix)
  10. Valuing Impacts from Observed Behavior: Other Revealed Preference Methods
  11. Existence Value, Contingent Valuation: Using Surveys to Elicit Information About Costs and Benefits
  12. Shadow Prices from Secondary Sources
  13. How Accurate is CBA?

Recommended Reading

  • Dumas, Schuhmann and Whitehead, AFS Symposium, 2005 [PDF].
  • Graham, REEP, 2007 [PDF].
  • Hahn, Journal of Economic Perspectives, 1998 [PDF].
  • Hahn and Dudley, REEP, 2007 [PDF].
  • Rose, et al., Natural Hazards Review, 2007 [PDF].
  • OMB, Draft 2007 Report to Congress on the Costs and Benefits of Federal Regulations [PDF].

Grades

The grades are based on the homework assignments (worth 100 points each) and two exams (worth 100 points each). The maximum number of points is 300. Final grades will be assigned as follows:

Grade A A- B+ B B- C+ C C- D+ D D- F
% 93.33 90 86.67 83.33 80 76.67 73.33 70 66.67 63.33 60 below 60
Points 280 270 260 250 240 230 220 210 200 190 180 below 180

Exams

There are two exams during the semester -- one in-class mid-term exam and a final exam administered during the final exam period. Each exam is worth 100 points. A university excused or emergency absence is usually necessary to schedule a make-up exam. Each exam is graded on a 100 point scale.

Homework Assignments

There are a number of homework assignments during the semester worth 100 points. These will generally involve questions at the back of the textbook chapters.

Miscellaneous

Class Attendance: From the catalogue: "It is the policy of Appalachian State University that class attendance is considered to be an important part of a student's educational experience. Students are expected to attend every meeting of their classes, and are responsible for class attendance."

Classroom behavior: The following classroom behaviors are not acceptable: excessive and/or loud chatting with other students, disruptive coming and going, answering your cell phone and other annoying behaviors.

Academic Dishonesty: It is the responsibility of every student to abide by the Appalachian State University Academic Integrity Code. In short: "Students will not lie, cheat, or steal to gain academic advantage."

Disabilty: "If you have a disability for which you are or may be requesting an accommodation, you are encouraged to contact both your instructor and the Office of Disability Services, 222 D.D. Dougherty, 262-3053/262-3056 (TTY) as early as possible in the term."

ASU Office Hours Policy: Every full-time faculty member is required to be available seven (7) hours per week during the regular academic year to consult with students. Requirements for part-time faculty will be prorated according to the number of hours taught. Each department will maintain an office hours policy that establishes standards regarding a mix among formal office hours, meetings in other locations, and electronic communications appropriate for faculty members and curricula in that department. A schedule indicating the times available for formal office hours, meetings in other locations, and electronic communications must be posted on the faculty member�s office door, listed on course syllabi, and provided to the departmental office at the beginning of each semester. Electronic communication addresses, URLs, and/or phone numbers must be listed on course syllabi and also provided to the faculty member�s departmental office. During the term of a summer session in which a faculty member teaches, office hours expectations are half of those during the regular academic year.

Last Update: 11/29/2007