If you have any questions about the course, please be in touch with course assistant Tiina Tamminen, Tiina.email@example.com
For materials see https://mooc.helsinki.fi/course/view.php?id=310
Open to all students of the University of Helsinki.
A good complement to this course is the course AGERE-003 Valuation.
A good complement to this course is the course Environmental Valuation.
To familiarize the student with the basic methods of cost-benefit analysis (hereafter CBA) and their application to the evaluation of projects and policies. By the end of the course students should be able to:
1. Estimate the impacts and value the outcomes of projects using market prices, as well as have a very basic understanding of how outcomes that are not as easily measured in monetary terms are valued
2. Calculate the net present value of a project.
3. Understand the impact of the choice of the discount rate on the net present value of a project, illustrate and critically assess the different theories regarding the choice of the discount rate
4. Understand how uncertainty is incorporated into cost-benefit analysis and perform both partial and Montecarlo sensitivity analysis.
5. Understand how distributional issues can be incorporated into cost-benefit analysis and perform a simple distributionally weighted cost-benefit analysis
6. Understand the difference between cost-effectiveness and cost-benefit analysis and critically appraise the advantages and limitations of these two methods.
7. Understand, illustrate and critically appraise the philosophical and ethical underpinnings of costbenefit analysis.
8. Critically assess cost-benefit analyses and distinguish a well-conducted cost-benefit analysis from a poor one.
Spring term, third period, odd years.
This course uses the flipped learning method. Before coming to class the students will:
- read the assigned chapters of the textbook, course notes and other written materials and watch the assigned lecture videos
- do the Moodle test related to the aforementionedmaterials
Contact teaching will be spent on different activities that encourage students to process and apply cost-benefit analysis methods and principles. Class time will be structured around conceptual questions and exercises, case studies, discussions, and mini lectures.
- Textbook The required textbook is: Boardman, A.E., D.H. Greenberg, A.R. Vining, and D.L. Weimer. 2011. Cost-Benefit Analysis: Concepts and Practice (Fourth Edition). Upper Saddle River, N.J.: Pearson. (Hereafter Boardman et al.)
- Other required reading materials will include peer-reviewed articles and reports and will be available on Moodle either directly or as a link to the University library resources.
Supplementary readings will be indicated at the during the course though Moodle
The course grade will be based on the following components:
• Group work
• Final exam
• Pre-class Moodle tests
• Class participation and engagement
Microeconomics provides the primary foundation for cost-benefit analysis. Students enrolling in this course should have a knowledge of intermediate microeconomics (Y56a+b or equivalent course). Students who have only taken an introductory level microeconomics course such as Y55a Microeconomics principles or have particularly relevant experience can still enrol in the course. However they should be prepared to spend extra time learning the underlying microeconomic principles and tools.
Chiara Lombardini, Väinö Nurmi
Replaces the course 863010 Cost-Benefit Analysis 5 cr.