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A practical introduction to cost-benefit analysis through problem solving. This authoritative, market-leading text is known for its consistent application of a nine-step framework for conducting or interpreting a cost-benefit analysis. This edition includes a number of chapters that have been revised and reorganized to make the material clearer and more accessible.
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Table of Contents

Part I: OverviewChapter 1. Introduction to Cost-Benefit AnalysisChapter 2. Conceptual Foundations of Cost-Benefit AnalysisPart II: Fundamentals of CBAChapter 3. Economics Foundations of Cost-Benefit AnalysisChapter 4. Valuing Benefits and Costs in Primary MarketsChapter 5. Valuing Benefits and Costs in Secondary MarketsChapter 6. Discounting Benefits and Costs in Future Time PeriodsChapter 7. Dealing with Uncertainty: Expected Values, Sensitivity Analysis, and the Value of InformationChapter 8. Option Price and Option ValueChapter 9. Existence ValueChapter 10. The Social Discount RatePart III: Valuation of ImpactsChapter 11. Predicting and Monetizing ImpactsChapter 12. Valuing Impacts From Observed Behavior: Experiments and Quasi-ExperimentsChapter 13. Valuing Impacts from Observed Behavior: Direct Estimation of Demand CurvesChapter 14. Valuing Impacts from Observed Behavior: Indirect Market MethodsChapter 15. Contingent Valuation: Using Surveys to Elicit Information About Costs and BenefitsChapter 16. Shadow Prices from Secondary SourcesChapter 17. Shadow Prices: Applications to Developing CountriesPart IV: Related MethodsChapter 18. Cost-Effectiveness AnalysisChapter 19. Distributionally Weighted Cost-Benefit AnalysisChapter 20. How Accurate is CBA?

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