IMPROVING THE ACCURACY OF BENEFIT-COST ANALYSIS

Benefit-cost analysis, and it has been aiding decision-makers, particularly those in the U.S. Government, since the 1930s. However, as practiced it suffers from two major weaknesses. First, because it is an analytical tool capable of dealing only with what can be easily quantified, it invariably omits the broad spectrum of nonquantifiable phenomena which determine those intangible factors that establish our quality of life. The second weakness is the "judge and jury" characteristic whereby the same agency that proposes a project is also the one that performs the benefit-cost analysis to determine whether the project should be approved.

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  • Corporate Authors:

    Institute of Electrical and Electronics Engineers

    3 Park Avenue, 17th Floor
    New York, NY  USA  10016-5997
  • Authors:
    • Bordman, S L
  • Publication Date: 1973-9

Media Info

  • Pagination: 5 p.
  • Serial:
    • IEEE Spectrum
    • Volume: 10
    • Issue Number: 9
    • Publisher: Institute of Electrical and Electronics Engineers (IEEE)
    • ISSN: 0018-9235

Subject/Index Terms

Filing Info

  • Accession Number: 00050092
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 11 1974 12:00AM