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Managing Cost-benefit Analysis

Managing Cost-benefit Analysis


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About the Book

Is there a need for another work on cost-benefit analysis? We are content to accept the market verdict on that question; three features of the work merit consideration by prospective readers. First, the central aspect of each case-study is the detailed setting out of the calculations. Our reading of the literature convinces us that this is an area which most precursor texts have regarded as far too mundane to treat seriously. However, students expecting to manage cost-benefit appraisals in their future careers will have to acquire skills in the construction and interpretation of cost and benefit data streams. We hope that these examples will provide an introduction to those skills. Second, the emphasis here is on cost-benefit analysis as a management aid. Enough has been said in the literature for students to appreciate that it is often difficult to quantify and evaluate the impacts assessed in an appraisal. Accordingly, practioners rarely claim to produce a definitive cost-benefit statement. Rather, the analyst attempts to disclose the "model" which confronts the decision-maker: benefit and cost outcomes may vary with different assumptions about the physical impacts; they may vary as the values placed upon key outputs are changed; and they may vary as the time profile of the benefits and costs is altered. All the potential sources of variation in model results should be disclosed. Each case study stresses the factors tending to increase managerial discretion, as opposed to those factors limiting the range of choice. Third, in a number of cost-benefit appraisals there are residual categories of benefit and cost which prove impossible to evaluate. Nevertheless, managers will normally wish to take such non-valued impacts into account in weighing up their decision. It is possible to suggest methods which systematically integrate non-valued impacts into the analysis. Where appropriate, we show how this can be done.

Table of Contents:
Introducing the case studies; health care; privatizing public sector assets; assessing transport projects; electricity generation (and the case for Sizewell B); trees in the forest; land drainage and irrigation; we need a new computer; the appraisal of private financing; some concluding thoughts. Appendix: discounting formulae and tables.


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Product Details
  • ISBN-13: 9780333480380
  • Publisher: Palgrave Macmillan
  • Publisher Imprint: Palgrave Macmillan
  • Height: 222 mm
  • Width: 148 mm
  • ISBN-10: 0333480384
  • Publisher Date: 21 Jun 1990
  • Binding: Hardback
  • Weight: 478 gr


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