Outline: 3/13/2012
Social discount rate (SDR)
Market-based approach/ opportunity cost of
capital
Optimal choices of consumption today versus
consumption in future
Optimal growth rate approach
Intergenerational discounting
Homework #4 due
Next: climate cha

Outline: 3/15/2012
The economics of climate change policies
Science
Estimates of the total economic effect of
climate change
Estimates of the carbon externality
Controversy about social discount rate
After Spring Break: Dealing with
uncertainty
Science of

Outline: 3/27/2012
Dealing with uncertainty
Expected value
Decision trees
BGVW, Ch. 7, pp. 167-177
Next: expected utility and risk aversion
Review intermediate micro
BGVW, Ch. 8
Expected Value Analysis
Math/ statistical term
Discrete case
Set of contingen

Outline: 3/29/2012
CBA under uncertainty
Extend the idea of compensating variation to
include uncertainty
Expected utility and risk aversion
Review intermediate microeconomics
Option price
Homework #5 due Thursday, 4/5
Expected Utility and Risk
Aversion
G

Outline: 4/10/2012
Next part of syllabus (BGVW, Ch. 12)
Evaluation Designs
CBAs of Education & Training Programs
Example: the Perry Pre-School Program
James Heckman, Professor, University of Chicago, &
Nobel Laureate
"Hard Evidence on Soft Skills
April 26

Outline: 4/03/2012
CBA under uncertainty
Review
Graphs
Option price (OP): compensating variation in
income for a policy that changes uncertainty
Friedman Savage preferences
OP for a policy (dam) that reduces but
doesnt eliminate uncertainty
Homework #5 du

Value of a statistical life:
4/24/2012
Road map: valuing benefits of non-market goods
Revealed preference methods (Ch. 14)
Value of a statistical life: pages 345 349
Ex: health and safety regulations
Stated preference methods: contingent valuation
surv

Outline: May 1, 2012
Stated preference methods (Ch. 15)
General discussion
Example about obesity policy
Exxon Valdez oil spill example
BP Deepwater Horizon example (next time)
Homework #7 (and last!) due Thursday, 5/3
On-line evaluation for courses offere

Outline: 04/05/2012
Example of a risk-increasing project
OMB Guidelines
Rationales for Expected Surplus as a Practical
Benefit Measure, pp. 215 218
Prelim #2: Thursday, April 19
Wont cover
Figures 82, 8-3, 8-4
Most of the text discussion on pages 206 215

Outline: 5/3/2012
Stated preference methods (Ch. 15)
Estimating damages from oil spills
Understanding the Costs and Benefits of Deepwater
Oil Regulation, Krupnick et al, January 2011.
Discussion Paper, Resources for the Future
Final Exam
35% of course gra

Outline: 4/26/2012
Revealed preference methods
Last time: VSL (Ch. 14, pp. 345 349)
Today: examples of using VSL in health and safety
regulations
Cost-effectiveness analysis (Ch. 18, pages 465
466, pages 475 484)
Next week: stated preference methods (Ch.

Outline: 03/6/2012
Road map
Discounted present value: simple
example
PV: multiple years
Homework #4: Due Tues. 3/13/2012
(Prelim #1 will be handed back next time)
Road Map: Review & Preview
Review: first prelim covered the basics of valuing
benefits

Outline: 2/28/12
Test format
Review
Practice problems
TA office hours:
Tuesday (today): 4:30 5:30 pm
Wednesday:
11 am 12:30
Extra office hours:
Wednesday:
2 pm 3:30 pm
Test format
Shorter True-False-Uncertain questions: typically
require you to know

Outline: 2/23/2012
Examples of using distributional weights/
social surplus approach
Luxury tax
Minimum wage
Thinking about equity/efficiency tradeoffs
Example: evaluating the growth of US
economy
Prelim Exam: Thursday, March 1
Example 1: tax luxuri

PAM 3300
Intermediate Policy Analysis
Spring 2012
Professor: Don Kenkel, PhD
TAs:
Catalina Herrera Almanza
Shooshan Danagoulian
What this course is about
In-depth treatment of the tools of cost-benefit
analysis (CBA)
Introduced CBA in PAM 2300
CBA is a

PAM 3300
Intermediate Policy Analysis
Spring 2012
Professor: Don Kenkel, PhD
TAs:
Catalina Herrera Almanza
Shooshan Danagoulian
What this course is about
In-depth treatment of the tools of cost-benefit
analysis (CBA)
Introduced CBA in PAM 2300
CBA is a

Outline: 1/26/2012
Conceptual Foundations of CBA (Ch. 2)
Pareto principle
Kaldor-Hicks criterion
Utilitarian social welfare function
2 digressions: standing & consequentialism
CBA in the federal government
CBA and multi-goal analysis
Next time: Pl

Outline: 2/07/12
Valuing benefits in efficient markets (cont.)
Direct supply
Reduce private sector costs
Valuing opportunity costs
Next time
Putting it all together: the basics
Example: Ending the peanut quota
Homework #1 due today
Homework #2 du

Outline: 2/2/2012
Last time: CV & Consumers Surplus
This time:
Producer Surplus
Market successes and failures
Social Surplus = CS + PS
3 basic postulates of CBA
Valuing benefits in efficient markets (to be
continued next week)
Homework #1 Due Tues

Outline: 1/26/2012
Conceptual Foundations of CBA (Ch. 2)
Pareto principle
Kaldor-Hicks criterion
Utilitarian social welfare function
2 digressions: standing & consequentialism
CBA in the federal government
CBA and multi-goal analysis
Next time: Pl

Outline: 2/14/12
Measuring benefits & costs in distorted
markets
Externalities
Measuring benefits of consumption under
addiction
Example: Australian gambling
Homework #3: TBA
Next time: hiring unemployed labor
Measuring B & C in distorted
markets
3

Outline: 2/16/12
Hiring labor
Hiring unemployed labor
Environment versus jobs
Homework #3: due Thursday, Feb. 23
Prelim #1: Thursday, March 1!
Homework #3
Textbook Exercises for Chapter 4 (pp. 110 111):
1. Implementing a minimum wage.
2. Increasing a high

Outline: 2/09/2012
Measuring benefits & costs in efficient
markets: putting it all together
Dam: simple example
Ending the peanut quota
Next time
Measuring benefits under addiction
Homework #2 due Tuesday, 2/14
Dam: simple example
CBA of a dam that

Outline: 2/21/12
Clarification/ extension from last time: the
incidence of the costs of regulation
Distributionally weighted cost-benefit
analysis
Next time: more discussion about
distributional concerns
Homework #3: due Thursday, Feb. 23
Prelim #1:

Outline: 1/31/2012
Putting a dollar value on happiness
(Appendix to Ch.3)
Measuring Happiness directly
Homework #1: Due Tuesday, 2/7
Next time
Valuing benefits and costs in efficient
markets: consumer and producer surplus
(Ch. 3 & 4)
Putting a dollar

Outline: 3/13/17
Distributional weights, continued
Todays and last weeks material on distrib weights
will be on prelim #2
Min wage example
Textbook example
Empirical studies
More discussion of equity vs. efficiency
Thinking about trends in earnings

PAM 3300:
Non-Experimental Designs
Designs with no control group or no pretest
What are the threats to validity?
One explanation for the findings is that students this year are less able than the previous cohort of students, and this caused the decl

PAM 3300:
The NYC Voucher Study (cont)
School Vouchers: For and against
Advocates say that vouchers (school choice):
Allows parents & students to shop for best school that provides education most aligned with their needs/preferences. Poor pare

Outline: 3/29/2017
The economics of climate change policies
(Science/ Estimates of the total economic
effect of climate change)
Estimates of the carbon externality
Controversy about social discount rate
After Spring Break: Dealing with
uncertainty
H

Outline: 4/17/2017
CBA under uncertainty: review
Graphs
Option price (OP): compensating variation in
income for a policy that changes uncertainty
Friedman Savage preferences
OP for a policy (dam) that reduces but doesnt
eliminate uncertainty
Homewor

20
Outline: 03/15/2017
Road map
Discounted present value
Lectures will emphasize big picture, and how to
choose the right discount rate
Sections will show calculations in spreadsheets using
Excel
Return exams
Homework #6 due Wed 3/29
Next time: dis

Outline: 3/27/20175
Social discount rate (SDR)
Last time
Market-based approach/ opportunity cost of
capital
This time
Optimal growth rate approach
Intergenerational discounting
Just give me a number!
Homework #6 due Wed 3/18
Homework #7 due Frida

Outline: 4/10/2017
Dealing with uncertainty
Expected value
Decision trees
BGVW, Ch. 7, pp. 167-177
Next: expected utility and risk aversion
Review intermediate micro
BGVW, Ch. 8
Homework #7 due Fri 4/14
Expected Value Analysis
Math/ statistical t