Cost benefit analysis of Public Decisions

This module covers the following topics: role of economic analysis in policy, project and policy financing; project cycle and the public sector’s involvement ; investment and policy appraisal and project selection; alternative evaluation options (e,g, cost effectiveness analysis); valuation of external effects of investments; monitoring and evaluation of policies and projects

Introduce the concepts, theories and tools necessary to conduct a full economic (rather than simply financial) analysis of projects and policies.

Combination of theory and case studies to be prepared by students organized in groups

Contribution to the teaching profile

Provides an essential tool for any future economist interested in working for international organizations in financing projects. It is also useful to assess the social impacts of any policy or regulation. Since this is often done by contracts with consulting firms, this tool is also useful for those of you keen on working for consulting firms

References, bibliography, and recommended reading

Asian Development Bank (2013) Cost-Benefit Analysis for Development: A Practical guide, Manila, available (free) at: http://www.adb.org/sites/default/files/cost-benefit-analysis-development.pdf  
Campbell, H.F. and P.C. Brown (2003 or later edition) Benefit-Cost Analysis: Financial and Economic Appraisal using Spreadsheets ,Cambridge University Press, Commonwealth of Australia (2006), Introduction to Cost-Benefit Analysis and Alternative Evaluation Methodologies, Financial Management Reference Material No.5, available at http://www.finance.gov.au/publications/finance-circulars/2006/docs/Intro_to_CB_analysis.pdf  
Commonwealth of Australia (2006), Handbook of Cost-Benefit Analysis. Financial Management Reference Material No.5, available at http://www.finance.gov.au/publications/finance-circulars/2006/docs/Handbook_of_CB_analysis.pdf  
European Investment Bank (2013), Economic Appraisal of Investment Projects, available at http://www.eib.org/infocentre/publications/all/economic-appraisal-of-investment-projects.htm  
European Union (2008), Guide to Cost Benefit Analysis of Investment Projects, Brussels, available at: http://ec.europa.eu/regional_policy/sources/docgener/guides/cost/guide2008_en.pdf
HM Treasury (2011), The Magenta Book - Guidance for evaluation, available at https://www.gov.uk/government/publications/the-magenta-book

Course notes

• Université virtuelle
• Syllabus

Additional information

The class is limited to 30 students to allow teams to work as effectively as possible and share information

Contacts

Prof. Antonio Estache:  aestache@ulb.ac.be
Prof. Andrea Colombo: Andrea.Colombo@ulb.be

Campus

Solbosch

Method(s) of evaluation

• Other

Other

Combination of lectures, case studies and presentations by students

Mark calculation method (including weighting of intermediary marks)

40% for the paper you will have to work on as a part of a team of 5
20% for your ability to communicate your assessment in an individual policy oriented note
20% for a basic theory exam designed as a mutliple choice to make sure you have fully internalized the concepts
20% for your ability to conduct an individual evaluation of one of the other cases that will be assign to you

Language(s) of evaluation

• english