This book is an exposition of benefit-cost analysis, an analytic framework for organizing thoughts and listing the pros and cons of alternatives. It adopts an interactive political economy approach that accepts specific objectives reflecting the welfare desired for various groups.
1. Introduction 2. Public Investment: Rationales and Objectives 3. Program Information Structure 4. Estimating Project Effects 5. Valuation of Direct Effects 6. Opportunity Cost Adjustments 7. Valuation of Nonmarginal Projects 8. Distribution Effects 9. Valuation over Time and Selection Criteria 10. Uncertainty 11. The Political Economy of Budgeting 12. Conclusion: Systematic Analysis in Perspective