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Defining Regional “Standing” for Cost–Benefit Analysis in Federated Countries
Author(s) -
Dobes Leo
Publication year - 2019
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12241
Subject(s) - balance (ability) , cost–benefit analysis , state (computer science) , perspective (graphical) , business , economics , public economics , political science , computer science , law , medicine , algorithm , artificial intelligence , physical medicine and rehabilitation
Specification of “standing” – whose benefits and costs should be counted – is a crucial step in a Cost–Benefit Analysis. If it is omitted, some relevant costs and benefits may be excluded, or, conversely, wrongly included. The textbook formulation for standing is “the whole of society” for a country, but the literature is virtually silent on the issue at a sub‐national or regional level. A strictly state or regional standing can be a problem within federated countries such as Australia or the USA due to conceptual inconsistencies and resulting inefficiencies. On balance, a national perspective is to be preferred, at least as a default option.