Cost-Benefit Analysis, 7.5 credits

Main field of study

Course level

Advancement level

Entry requirements

• Economics, basic course 30 ECTS credits with at least 15 ECTS credits passed

Intended learning outcomes

On completion of the course, the student should be able to:
- account for the parts of micro and welfare theory that socioeconomic profitability calculations are based on,
- account for the use of socioeconomic profitability calculations in practice,
- critically review and be able to carry out a socioeconomic profitability calculation,
- apply methods for estimating benefits and cost items for effects, in cases both with and without a market price,
- analyse the problems and weaknesses that may be associated with socioeconomic profitability calculations.

Course content

The course covers basic theory and realia about:
- Welfare theory background
- Procedures for performing socioeconomic calculations in theory and practice
- Valuation of marketed goods and services in perfect markets and in cases of market imperfections or taxes/grants.
- Effects on secondary markets and indirect effects
- Discounting, time horizon, risk and uncertainty
- Methods for evaluating utility and costs when there are no market prices available i.e. revealed preferences methods and stated preferences methods, respectively
- Empirical applications within different fields
- Issues and limitations of socioeconomic profitability calculations.

Teaching and working methods

The teaching takes the form of lectures and exercises. The students should also study independently.

Examination

The examination consists of:

• Individually written examination, grading scale: UV
• Group project, grading scale: UG

The final grade G requires G in both examinations. The final grade VG also requires VG in the individually written examination.

Detailed information can be found in the study guide.

If special circumstances prevail, and if it is possible with consideration of the nature of the compulsory component, the examiner may decide to replace the compulsory component with another equivalent component.

If the LiU coordinator for students with disabilities has granted a student the right to an adapted examination for a written examination in an examination hall, the student has the right to it.

If the coordinator has recommended for the student an adapted examination or alternative form of examination, the examiner may grant this if the examiner assesses that it is possible, based on consideration of the course objectives.

An examiner may also decide that an adapted examination or alternative form of examination if the examiner assessed that special circumstances prevail, and the examiner assesses that it is possible while maintaining the objectives of the course.

Students failing an exam covering either the entire course or part of the course twice are entitled to have a new examiner appointed for the reexamination.

Students who have passed an examination may not retake it in order to improve their grades.

Grades

Other information

Planning and implementation of a course must take its starting point in the wording of the syllabus. The course evaluation included in each course must therefore take up the question how well the course agrees with the syllabus. 

The course is conducted in such a way that there are equal opportunities with regard to sex, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation and age.

If special circumstances prevail, the vice-chancellor may in a special decision specify the preconditions for temporary deviations from this course syllabus, and delegate the right to take such decisions.

Department