2009
DOI: 10.1111/j.1748-5991.2009.01045.x
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New foundations of cost–benefit analysis

Abstract: This article responds to the criticisms of New Foundations of Cost–Benefit Analysis that appeared in a review by Amy Sinden, Douglas A. Kysar, and David M. Driesen. We argue that their criticisms are either based on misunderstandings of our approach or are too demanding, in the sense that no reasonable decision procedure would satisfy them. We illustrate this second argument by demonstrating that their preferred approach – feasibility analysis – has little to recommend it.

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Cited by 104 publications
(135 citation statements)
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“…BCA is a decision-procedure, which is justified if and only if its use by regulators advances the public good, however defined (Adler & Posner 2006) Early research pointed out that BCA does not systematically advance Pareto efficiency or Kaldor-Hicks efficiency, but this work was largely beside the point. The relevant question is (1) whether some other decisionprocedure would work better at advancing (2) the relevant public good.…”
Section: The Case For Bcamentioning
confidence: 99%
“…BCA is a decision-procedure, which is justified if and only if its use by regulators advances the public good, however defined (Adler & Posner 2006) Early research pointed out that BCA does not systematically advance Pareto efficiency or Kaldor-Hicks efficiency, but this work was largely beside the point. The relevant question is (1) whether some other decisionprocedure would work better at advancing (2) the relevant public good.…”
Section: The Case For Bcamentioning
confidence: 99%
“…The foundations of the model were developed in 1853 by Jules Dupuit, with developments made over time (Adler and Posner, 2009). CBA defines the way in which costs and benefits should be measured and emphasises the principle that a decision must only be accepted if the benefits exceed the costs.…”
Section: Cost-benefit Analysismentioning
confidence: 99%
“…It is a model that compares the losses and gains that are associated with a business decision, policy or an investment project so that effective decisions can be made (Adler and Posner, 2009). The gains in this model are regarded as the increments of human well-being, whereas the losses refer to the decrements caused to the wellbeing of humans as a result of a business decision, policy or an investment project.…”
Section: Cost-benefit Analysismentioning
confidence: 99%
“…In the United States, the answer seems to be CBA. Since 1981, Republican and Democratic Presidents alike, the officials most responsive to the views of the median national citizen, have instructed agencies to employ CBA in evaluating policies (Adler and Posner, 2006). In the United Kingdom, the answer seems to be CEA.…”
mentioning
confidence: 99%
“…I have argued elsewhere that CBA and CEA, under appropriate conditions, can each be seen as rough proxies for a utilitarian SWF -for the maximisation of overall well-being (Adler, 2006;Adler and Posner, 2006). 5 In this world, the current world, contingent valuation studies have a very important role to play, as one source for estimating WTP amounts.…”
mentioning
confidence: 99%