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pierredv : cost-benefit-analysis   3

Make Economics at the FCC Great Again | The Technology Policy Institute, April 2017
by Caroline Cecot

"Most of us employ informal cost-benefit analysis (CBA)—or what Benjamin Franklin described as weighing pros and cons—whenever we make decisions in our daily lives.[1] It seems fair to expect federal agencies to do the same when considering new rules. Surprisingly, though, some agencies, including the Federal Communications Commission (FCC), are not required to engage in CBA before issuing a rule.

In a recent speech, FCC Chairman Ajit Pai promised to rectify this situation. In particular, he announced his plan to establish an FCC Office of Economics and Data. The office would, among other things, prepare CBAs to help the Commission determine whether the benefits of a given proposal are expected to outweigh its costs and consider how the costs and benefits of the proposal will be distributed among different segments of society.

Such an office is long overdue."
TPI  economics  FCC  cost-benefit-analysis  CBA 
april 2017 by pierredv
A Better Calculus for Regulators: From Cost-Benefit Analysis to the Social Welfare Function by Matthew D. Adler :: SSRN
Via Blake Reid
Abstract
The “social welfare function” (SWF) is a powerful tool that originates in theoretical welfare economics and has wide application in economic scholarship, for example in optimal tax theory and environmental economics. This Article provides a comprehensive introduction to the SWF framework. It then shows how the SWF framework can be used as the basis for regulatory policy analysis, and why it improves upon cost-benefit analysis (CBA).

Two types of SWFs are especially plausible: the utilitarian SWF, which sums individual well-being numbers, and the prioritarian SWF, which gives extra weight to the well-being of the worse off. Either one of these is an improvement over CBA, which uses a monetary metric to quantify well-being and is thereby distorted by the declining marginal utility of money. The Article employs a simulation model based on the U.S. population survival curve and income distribution to illustrate, in detail, how the two SWFs differ from CBA in selecting risk-regulation policies.
CBA  cost-benefit-analysis  law  economics  risk  regulation 
march 2017 by pierredv
The State of Cost-Benefit Analysis at the S.E.C. - The New York Times - David Zaring, Jul 2015
"The cost-benefit analysis is controversial. . . The S.E.C.’s recent proposal of a compensation clawback rule can tell us something about the state of cost-benefit analysis in financial rule-making today. . . The court’s interest in cost-benefit analysis might be said to have two degrees in intensity. The first, a requirement that the S.E.C. do one, and do it carefully, appears to have been internalized by the agency. A second, more intensive, cost-benefit analysis would require a quantification of the costs and benefits."
opinion  NYTimes  cost-benefit-analysis  SEC  government 
july 2015 by pierredv

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