PAM 3300 - [Cost-Benefit Analysis]

(SBA-HE)

Spring. Not offered: 2022-2023. Next offered: 2024-2025. 4 credits. Letter grades only.

Prerequisite: PAM 2000 and PAM 2300. When this course is not offered, PAM majors can take PAM 3301 as a requirement substitution.

D. Kenkel.

In-depth treatment of methods for public policy analysis. The course focuses on cost-benefit analysis, a method grounded in microeconomics and applied welfare economics. Topics include market failures; willingness to pay; opportunity costs; discounting future costs and benefits; handling uncertainty and risk; incorporating distributional impacts; methods to value a statistical life; and methods to value environmental quality and other non-market goods. Numerous examples are taken from a variety of policy areas, including crime, education, health, welfare, and regulation.

Outcome 1: Explain how to conduct cost-benefit analysis of government projects.

Outcome 2: Calculate the discounted present value of future costs and benefits.

Outcome 3: Evaluate distributional effects of public policies.

Outcome 4: Apply uncertainty and risk to policy analysis.

Outcome 5: Explain how to evaluate non-market activities such as environmental policy and the value of a statistical life.