A Guide to Benefit-Cost Analysis

This is a basic and clear guide to the practices of CBA. It explains the fundamentals of how CBA should be applied and provides concrete examples of the methods. The author has a good grasp of how to explain concepts such as compensating and equivalent variation. The book is a little dated in that the current controversies about the legal and ethical foundations of CBA are not well addressed. Therfore, while is serves as a strong text at the undergraduate level, instructors will want to augment the treatment with readings from the current literature such as the works of Adler and Posner.