cost benefit analyis

 

Identify a point of debate within this issue area and write a memo that outlines a theoretical cost-benefit analysis for a proposed policy change to address the problem, drawing from existing literature (at least three policy documents or journal articles).

That is, you will not actually conduct the analysis but will identify the types of information you would need and where they might be available, and discuss the technique(s) you would use to conduct the analysis.
Your memo should do the following:

1. Describe the policy debate and the specific proposal you are analyzing.
2. List the types of costs and benefits you believe should be valued. How does this correspond to or depart from what is in previous literature?
3. Identify a source of information for each of these costs and benefits. Give examples of how these have been valued in the literature to date (by describing the approach and giving an example of an amount ? for example QALYs).
4. Identify any important considerations that you believe cannot be valued, or which you believe can be valued but for which you can find no source of data or information to use for that exercise.
5. Respond to these questions:
? How would your theoretical cost-benefit analysis be valuable to policymakers if conducted?
? What would policymakers want to know that is not covered by it?
? Would any of the other approaches covered in ?Economic Techniques,? part 2, be more appropriate?
? What other analytic approaches would be valuable?
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