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The objective of Cost-Benefit Analysis is to provide decision-makers with information about the social value of government-sponsored programs, projects and policies, so that they can allocate resources in a way that improves the well-being of society as a whole. The course covers the key concepts and tools that are essential for the evaluation of government activity by applying cost-benefit techniques, including under conditions of uncertainty. Case studies are employed to give students the confidence and insights required to undertake their individual assignment. Alternative decision-making approaches will also be presented to provide a perspective on the advantages and disadvantages of cost-benefit analysis.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
On successful completion of this course, students will have:
- a solid understanding of the basic rationale and techniques for applying cost-benefit analysis to government-sponsored programs, policies and projects.
- the ability to plan and implement a cost-benefit study;
- the ability to understand and critique a cost-benefit study prepared by someone else.
Other Information
Week/day/session | date 2012 | topic |
week 1 | 24 July | overview and conceptual issues |
week 2 | 31 July | microeconomic underpinnings |
week 3 | 7 August | valuing benefits and costs |
week 4 | 14 August | time preference and net present value |
week 5 | 21 August | social discount rates |
week 6 | 28 August | valuation of impacts |
week 7 | 4 September | valuing impacts from observed behaviour |
n/a | 11 and 18 September | no classes |
week 8 | 25 September | valuing impacts using stated preference Mid-term test: to be notified |
week 9 | 2 October | shadow pricing |
week 10 | 9 October | risk and uncertainty |
week 11 | 16 October | uncertainty and options |
week 12 | 23 October | alternative evaluation approaches and distributional issues |
week 13 | 30 October | revision of selected issues |
Indicative Assessment
Assessment | Length | Mode of Submission | Due Date / Time | Weight |
Mid-term exam | 1.5 hours | exam | 7-23 November: time and place to be advised | 40 % |
Individual assignment | maximum 5,000 words, 18 pages | Paper, and via Turnitin | week 9: close of business 30 September | 55 % |
Lecture summary | one page maximum | written | to be advised in class | 5 % |
The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Workload
The IDEC 8088 course involves attendance at a weekly lecture of three hours (including a half hour break), plus a weekly tutorial of one hour. Tutorial times and venues will be determined in the first week of the semester.
Prescribed Texts
Boardman, AE, Greenberg, DH, Vining, AR & Weimer DL 2010, Cost-Benefit Analysis: Concepts and practice, 4th edn, Pearson Prentice Hall, New Jersey.
Preliminary Reading
The main text for the course is Boardman, AE, Greenberg, DH, Vining, AR & Weimer DL 2010, Cost-Benefit Analysis: Concepts and practice, 4th edn, Pearson Prentice Hall, New Jersey.
Cost Benefit Analysis covers a broad range of topics, so that a single text may not cover all relevant material. Supplementary material will therefore be used in the course. The following texts contain additional material that will be useful for some sections of the course, especially if students wish to explore a specific topic in more detail. A Reading Brick is also available.
Department of Finance and Administration 2006, Handbook of Cost-Benefit Analysis, Financial Management Reference Material no. 6, Commonwealth of Australia, Canberra. <http://www.finance.gov.au/publications/finance-circulars/2006/docs/Handbook_of_CB_analysis.pdf>
Gramlich, EM 1990, A guide to Benefit-Cost Analysis, Prentice-Hall, New Jersey.
Luskin, D & Dobes, L 1999, Facts and furphies in benefit-cost analysis: transport, Research Report 100, Bureau of Transport Economics, Canberra. Downloadable at <http://www.bitre.gov.au/publications/1999/report_100.aspx>
Mishan, EJ & Quah, E 2007, Cost Benefit Analysis, 5th edn, Routledge, Oxford.
Pearce, DW & Nash, CA 1981, The social appraisal of projects. A text in Cost-Benefit Analysis, Macmillan, London.
Perkins, F 1994, Practical Cost Benefit Analysis, Macmillan Education, South Melbourne.
Sinden, JA & Thampapillai, DJ 1995, Introduction to benefit-cost analysis, Longman Australia, Melbourne. http://library.anu.edu.au/record=b2520009
Zhuang, J, Liang, J, Lin, T, & De Guzman, F 2007, Theory and Practice in the Choice of Social Discount Rate for Cost-Benefit Analysis: a Survey, ERD Working Paper 94, Asian Development Bank, Manila. Downloadable <http://www.adb.org/sites/default/files/pub/2007/WP094.pdf>
Assumed Knowledge
IDEC 8088 is designed specifically for Masters level students. IDEC Graduate Diploma students should enrol under the course code IDEC 8001. Non-IDEC students should seek advice from their own area before enrolling in either course.
Fees
Tuition fees are for the academic year indicated at the top of the page.
If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Students continuing in their current program of study will have their tuition fees indexed annually from the year in which you commenced your program. Further information for domestic and international students about tuition and other fees can be found at Fees.
- Student Contribution Band:
- 2
- Unit value:
- 6 units
If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees. Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee | Description |
|---|---|---|
| 1994-2003 | $1338 | |
| 2014 | $3582 | |
| 2013 | $3582 | |
| 2012 | $3582 | |
| 2011 | $3576 | |
| 2010 | $3570 | |
| 2009 | $3570 | |
| 2008 | $3402 | |
| 2007 | $3132 | |
| 2006 | $3084 | |
| 2005 | $3084 | |
| 2004 | $2160 |
- International fee paying students
| Year | Fee |
|---|---|
| 1994-2003 | $3672 |
| 2014 | $4146 |
| 2013 | $4140 |
| 2012 | $4140 |
| 2011 | $4134 |
| 2010 | $4134 |
| 2009 | $4002 |
| 2008 | $4002 |
| 2007 | $3864 |
| 2006 | $3864 |
| 2005 | $3864 |
| 2004 | $3864 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
First Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 4889 | 17 Feb 2014 | 07 Mar 2014 | 31 Mar 2014 | 30 May 2014 | In Person | N/A |
