Cost benefit analysis vs. referenda

Martin J. Osborne () and Matthew Turner ()

Working Papers from University of Toronto, Department of Economics

Abstract: We consider a planner who chooses between two possible public policies and ask whether a referendum or a cost benefit analysis leads to higher welfare. We find that a referendum leads to higher welfare than a cost benefit analyses in "common value" environments. Cost benefit analysis is better in "private value" environments.

Keywords: Cost benefit analysis; elections; referenda; project evaluation (search for similar items in EconPapers)
JEL-codes: H43 H11 Q51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm and nep-pbe
Date: Written 2007-04-13

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