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Towards Principles and Standards for the Benefit-Cost Analysis of Safety

Published online by Cambridge University Press:  19 January 2015

Scott Farrow  and
W. Kip Viscusi
Scott Farrow
Affiliation:
University of Maryland, Baltimore County
W. Kip Viscusi
Affiliation:
Vanderbilt University
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Abstract

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Benefit-cost analysis (BCA) is frequently applied to decisions involving public safety which requires analyzing risk and assessing options to manage risks. Principles and standards may assist analysts, decision-makers, and the public in developing and interpreting such BCAs. Principles and standards at best represent commonly held views among a community of practice. Such views are continually evolving with advances in the field. This paper presents a modularized format towards principles and standards that may assist in focusing discussion and decisions about whether such proposals actually reflect principles and standards within the benefit-cost analysis community of practice. Among topics covered are welfare measures, benefit or cost transfer, and valuing uncertain outcomes.

Keywords

safetyriskprinciplesstandardswelfare
Type
Article
Information
Journal of Benefit-Cost Analysis , Volume 2 , Issue 3 , 25 August 2011 , pp. 1 - 25
Copyright
Copyright © Society for Benefit-Cost Analysis 2011

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