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Formality And Informality In Cost-Benefit Analysis, Amy Sinden

Utah Law Review

Cost-benefit analysis (CBA) is usually treated as a monolith. In fact, the term can refer to a broad variety of decisionmaking practices, ranging from a qualitative comparison of pros and cons to a highly formalized and technical method grounded in economic theory that monetizes both costs and benefits, discounts to present net value, and locates the point at which the marginal benefits curve crosses the marginal costs curve. This article develops a typology that helps to conceptualize the multiple varieties of CBA along a formality-informality spectrum. It then uses this typology to analyze the treatment of CBA by the academic …