Some Pitfalls of Practical Benefit-Cost Analysis

Clark Nardinelli

Journal of Benefit-Cost Analysis, 2018, vol. 9, issue 3, 519-530

Abstract: Practitioners of benefit-cost analysis face many difficulties. Despite the best training, guidance, and intentions, practitioners can stumble: actual benefit-cost analysis is hard and mistakes get made. Over the years, I have collected the mistakes I have seen in actual benefit-cost analyses. Many of the same mistakes occur over and over: the pitfalls of practical benefit-cost analysis. In this paper, I describe common pitfalls and suggest ways to avoid them.

Date: 2018
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