Behavioral Economics for Cost-Benefit Analysis
Benefit Validity When Sovereign Consumers Seem to Make Mistakes
By David L. Weimer | Publisher: Cambridge University Press
About the book
How should policy analysts assess 'benefit validity' when behavioral anomalies appear relevant? David L. Weimer provides thoughtful answers through practical guidelines. Behavioral economists have identified a number of situations in which people appear not to behave according to the neoclassical assumptions underpinning welfare economics and its application to the assessment of the efficiency of proposed public policies through cost-benefit analysis. This book introduces the concept of benefit validity as a criterion for estimating benefits from observed or stated preference studies, and provides practical guidelines to help analysts accommodate behavioral findings. It considers benefit validity in four areas: violations of expected utility theory, unexpectedly large differences between willingness to pay and willingness to accept, non-exponential discounting, and harmful addiction. In addition to its immediate value to practicing policy analysts, it helps behavioral economists identify issues where their research programs can make practical contributions to better policy analysis.
Editions of Behavioral Economics for Cost-Benefit Analysis
- Hardcover
- ISBN 9781107197350
- Paperback
- ISBN 9781316647660
Read an Excerpt
How should policy analysts assess 'benefit validity' when behavioral anomalies appear relevant? David L. Weimer provides thoughtful answers through practical guidelines. Behavioral economists have identified a number of situations in which people appear not to behave according to the neoclassical assumptions underpinning welfare economics and its application to the assessment of the efficiency of proposed public policies through cost-benefit analysis. This book introduces the concept of benefit validity as a criterion for estimating benefits from observed or stated preference studies, and provides practical guidelines to help analysts accommodate behavioral findings. It considers benefit validity in four areas: violations of expected utility theory, unexpectedly large differences between willingness to pay and willingness to accept, non-exponential discounting, and harmful addiction. In addition to its immediate value to practicing policy analysts, it helps behavioral economists identify issues where their research programs can make practical contributions to better policy analysis.
Frequently Asked Questions
What is Behavioral Economics for Cost-Benefit Analysis about?
How should policy analysts assess 'benefit validity' when behavioral anomalies appear relevant? David L. Weimer provides thoughtful answers through practical guidelines. Behavioral economists have identified a number of situations in which people appear not to behave according to the neoclassical assumptions underpinning welfare economics and its application to the assessment of the efficiency of proposed public policies through cost-benefit analysis. This book introduces the concept of benefit validity as a criterion for estimating benefits from observed or stated preference studies, and provides practical guidelines to help analysts accommodate behavioral findings. It considers benefit validity in four areas: violations of expected utility theory, unexpectedly large differences between willingness to pay and willingness to accept, non-exponential discounting, and harmful addiction. In addition to its immediate value to practicing policy analysts, it helps behavioral economists identify issues where their research programs can make practical contributions to better policy analysis.
What core themes, tropes, or subjects are explored in Behavioral Economics for Cost-Benefit Analysis?
Economics, Finance, Business and Management > Finance and accounting > Finance and the finance industry > Public finance and taxation
Where can I read a sample of Behavioral Economics for Cost-Benefit Analysis?
You can read an official preview of the few pages here https://www.book2look.com/book/9781107197350
Who is/are the Author/s of the book Behavioral Economics for Cost-Benefit Analysis?
David L. Weimer
What are the ISBN numbers for the physical and digital editions?
Behavioral Economics for Cost-Benefit Analysis is available as hardcover(ISBN 9781107197350) and paperback(ISBN 9781316647660)