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How should policy analysts assess 'benefit validity' when behavioral anomalies appear relevant? David L. Weimer provides thoughtful answers through practical guidelines.
List of contents
1. Introduction; 2. Neoclassical valuation principles for CBA; 3. Possible behavioral frameworks for CBA; 4. Risk perception and expected utility deviations; 5. Large deviations between WTP and WTA; 6. Non-exponential time discounting; 7. Harmful addictive consumption; 8. Practical guidelines for valuation.
About the author
David L. Weimer is the Edwin E. Witte Professor of Political Economy at the University of Wisconsin, Madison. He is the author of numerous articles and monographs on health policy and policy craft, as well as the co-author of two texts that have made important contributions to public policy education: Policy Analysis: Concepts and Practice, 6th edition (forthcoming) and Cost-Benefit Analysis: Concepts and Practice, 4th edition (2014). A Fellow of the National Academy of Public Administration, he served as President of the Association for Public Policy Analysis and Management in 2006 and President of the Society for Benefit-Cost Analysis in 2013.
Summary
David L. Weimer assesses the implications of behavioral economics for cost-benefit analysis. The book has two major audiences. First, it provides practical guidelines for policy analysts when behavioral anomalies threaten the validity of conventionally measured benefits. Second, it identifies areas where behavioral economists can make their research more relevant to public policy.
