Lecture 1

Question 1

What is the ROAMEF cycle

Answer 1

Question 2

Describe the UK fiscal framework

Answer 2

Question 3

What are the 5 cases of a business case?

Answer 3

Question 4

What is a Business Impact Target

Answer 4

Question 5

What are the 6 different appraisal techniques?

Answer 5

Question 6

Describe Cost-Benefit analysis

Answer 6

Question 7

Describe Cost-effectiveness analysis (CEA)

Answer 7

Question 8

Describe cost-utility analysis (CUA)

Answer 8

Question 9

What are the two key microeconomic concepts underpinning CBA?

Answer 9

Question 10

What are the 12 steps in the 5 stages of CBA?

Answer 10

Question 11

What are the two possible rationales for intervention?

Answer 11

Question 12

What is the definition of a public good?

Answer 12

Question 13

How are demand curves for public goods derived?

Answer 13

Deriving demand curves for public goods
* For private goods, market demand curves can be derived by summing quantity demanded by each consumer at each price horizontal summation
* The market demand curve for public goods cannot be derived this way as consumers are unable to purchase and consume different quantities of the good
* We need to consider how much people are willing to pay in total for each level of output. By summing WTP for each given quantity we can derive the market demand curve vertical summation

Stated preference techniques will be used to try and elicit the WTP for public goods as this is not revealed by the market

Question 14

How do we set objectives and identify options in a CBA?

Answer 14

Question 15

What things should we consider when setting a BAU?

Answer 15

Question 16

Describe what a theory of change is

Answer 16

developing a theory of change typically involves considering the proposed inputs and the causal change that leads these inputs through to the expected outputs and outcomes. It considers the causal mechanisms by which an intervenition is expected to achieve its outcomes, basing this theory on the gathering and synthesis of evidence

Question 17

Who has standing in UK CBA?

Answer 17

Question 18

What is the typical time period of a CBA?

Answer 18

Question 19

Give an example of how different projects can have different time horizons for their CBAs?

Answer 19

Question 20

Thinking about how you’d set a counterfactual for a minimum wage legislation, can you suggest methods for how you’d set a counterfactual?

Answer 20

Question 21

Using a shadow wage curve explain the different steps of estimating the costs of a rise in the minimum wage?

Answer 21