ECON361 Chapter Notes - Chapter 20: British Columbia Highway 5, Ex-Ante, Opportunity Cost
9 Aug 2016
School
Department
Course
Professor
Document Summary
Purpose: the usefulness of cba depends on its accuracy. Cba is to conduct ex ante/ex post or ex ante/in medias res comparisons, which were introduced in chapter 1. This chapter presents 3 cbas of the coquihalla highway-one ex ante, one in medias res and one ex post. It then discusses sources of errors in cba. Fundamentally, accuracy depends on how well the nine steps of cba (chapter 1) are performed. To reiterate from chapter 1, there are three temporal cba types: ex ante cba prior to project, ex post cba after the project. In media res cba during the project t= year0 t>t. Holding all else constant, studies performed later are usually more accurate, because, as time goes on, there is usually less uncertainty about impacts and therefore it is easier to determine actual npv. Errors may arise for a number of reasons, including managers" bureaucratic lens (organizational perspective/self-interest).
