Lecture 1 Flashcards
What is the ROAMEF cycle
Describe the UK fiscal framework
What are the 5 cases of a business case?
What is a Business Impact Target
What are the 6 different appraisal techniques?
Describe Cost-Benefit analysis
Describe Cost-effectiveness analysis (CEA)
Describe cost-utility analysis (CUA)
What are the two key microeconomic concepts underpinning CBA?
What are the 12 steps in the 5 stages of CBA?
What are the two possible rationales for intervention?
What is the definition of a public good?
How are demand curves for public goods derived?
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
How do we set objectives and identify options in a CBA?
What things should we consider when setting a BAU?
Describe what a theory of change is
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
Who has standing in UK CBA?
What is the typical time period of a CBA?
Give an example of how different projects can have different time horizons for their CBAs?
Thinking about how you’d set a counterfactual for a minimum wage legislation, can you suggest methods for how you’d set a counterfactual?
Using a shadow wage curve explain the different steps of estimating the costs of a rise in the minimum wage?
