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Workshop Library

Valuing Time Savings in Low- and Middle-Income Countries

This workshop will expose participants to the theory and practice of incorporating changes in time use in benefit-cost analysis, with a focus on applications in low- and middle-income countries (LMICs). The instructors will highlight why cost-benefit and development practitioners and researchers should care about the value of time, and provide an overview of existing literature that has examined the value of time savings in LMIC settings.

The course will then discuss theoretical aspects related to time valuation, and describe approaches to measurement of time use, including sources for secondary data and primary data collection techniques including recent innovations. Time valuation approaches based on stated and revealed preference techniques will be considered, and will be demonstrated through applications in different sectors—e.g., water, energy, health and transportation. Finally, the course will provide best practices for benefit-transfer, and a framework for determining when benefit-transfer should be augmented with primary data collection. All through the workshop, limitations and gaps in current practice and understanding will be highlighted.

Presenters:

• Dale Whittington.
• Joseph Cook
• Marc Jeuland
  
• Maya Chandrasekaran

Benefit-Cost Analysis for U.S. Regulations co-sponsored by the Society for Risk Analysis (SRA)

Benefit-cost analysis is used around the world to assess regulatory impacts. This workshop introduces the use of Benefit-Cost Analysis for Regulatory Impact Analyses (RIAs) in the Federal government. The topics will include issues of identifying the market failure, establishing the correct baseline, choosing the policy options, estimating benefits, estimating costs, and identifying transfers. The focus will be on analyses of U.S. health, and safety regulations issued by the U.S. Department of Health and Human Services (HHS), with further examples from the U.S. Environmental Protection Agency (EPA) in the last two decades. The concepts and practices we'll discuss are equally applicable to analyses conducted in other policy areas and in other countries or at a sub-national level. The workshop will be structured as an overarching presentation with examples from past RIAs used as practical example to be discussed by the participants. This workshop is intended for both economists and other practitioners who have a working knowledge of Benefit-Cost Analysis and the general concept of measuring welfare effects. This working knowledge will then be applied to the Regulatory Impact Analysis context. The presenters are seasoned practitioners with substantial experience in conducting these analyses for federal regulatory actions. This workshop is intended for both economists and other practitioners who have a working knowledge of Benefit-Cost Analysis and the general concept of measuring welfare effects.

Presenters:

• Aliya Sassi
• Lizzi Quin
• Chris Dockins
• Charles Griffiths
• Aaron Kearsley

Benefit-Cost Analysis for Beginners

This short course will provide an introduction for 'beginners' who have not previously had formal instruction in BCA. It is designed to help those who encounter BCA to better understand its purpose and methods as well as those who are curious about how it might be useful in their work. Although some prior exposure to economics would be helpful, the workshop is designed to be accessible to a general audience. Upon completion of the workshop, attendees should have a clear understanding of the purpose, underlying concepts, strengths, and weaknesses of BCA.

The workshop will compare BCA to other analytical approaches commonly employed by policy analysts to put it into perspective. It will also introduce and explain a number of key BCA concepts including standing (whose costs and benefits count), incremental costs and benefits (clear alternatives to current policy), opportunity cost (what we give up to do the alternative), willingness to pay (how much people value the impacts of the alternative), 'shadow prices' (monetizing impacts), discounting (taking account of the timing of costs and benefits), and sensitivity analysis (taking account of uncertainty). Several examples of BCAs will be distributed prior to the workshop to provide illustrations of concepts and facilitate discussion among attendees.

Presenters:

• Glenn C. Blomquist
• David L. Weimer

Addressing Uncertainty in Regulatory Impact Analysis

Estimates of the costs and benefits of proposed regulations are inherently uncertain. To develop such estimates, analysts must construct models attempting to predict the future. They rely on information that may be subject to limitations related to the quality of the methods used to collect the data, and the extent to which the data address the same population, industries, or geographic areas as the regulation. The models also require many assumptions, such as how regulated entities will respond to the regulation and the likely future state of the world.

A critical challenge for analysts is to clearly describe the key sources of uncertainty associated with these estimates, in qualitative or quantitative terms. The goal is to ensure that decision-makers and other stakeholders understand the extent to which uncertainty – in data, models, and assumptions – affects the main analytic conclusions. A well-developed presentation of uncertainty can aid decision-makers in understanding the confidence they should have in the results and the magnitude of any bias.

This workshop brings together experts and practitioners with diverse perspectives to discuss the need for uncertainty analysis, along with basic concepts, commonly applied tools and methods, and best practices for communicating results. Some of the tools we will discuss include scenario analysis; Monte Carlo simulation; event trees, probability trees, decision trees; sensitivity analysis and break-even analysis; and expert elicitation. It is targeted on those interested in conducting these analyses and those interested in better understanding the strengths and limitations of analyses they review. Prior to the workshop, participants will receive a list of optional readings. The workshop itself will consist of a series of presentations and case studies, with ample time for discussion.

Presenters:

• Jennifer Baxter
• Dr. Robin Dillon-Merrill
• Aaron Kearsley

Benefit-Cost Analysis in Low- and Middle-Income Countries

This workshop addresses the use of benefit-cost analysis to evaluate policies for improving health and longevity in low- and middle-income countries. It builds on the Reference Case Guidelines for Benefit-Cost Analysis in Global Health and Development funded by the Bill & Melinda Gates Foundation. The workshop combines presentations with substantial opportunities for interaction and discussion, including case studies. It is designed for those with relatively little experience conducting or reviewing these analyses, although some familiarity with economic evaluation is desirable. Participants will develop an understanding of the fundamental concepts that underlie benefit-cost analysis, consider its advantages and limitations, explore its major components and what each should include, and gain familiarity with default estimates for valuing changes in time use and in health and longevity.

Presenters:

• Lisa A. Robinson
  
• Maureen Cropper
  
• James K. Hammitt 
• Dean Jamison 
• Mark Radin 
• Thomas Wilkinson 
• Dale Whittington 
• Brad Wong
  

CBA for U.S. Regulatory Impact Statements
(Co-sponsored by the Society for Risk Analysis Economics and Benefits Analysis Specialty Group)

Benefit-cost analysis is used around the world to assess regulatory impacts. This workshop introduces the use of Benefit-Cost Analysis for Regulatory Impact Analyses (RIAs) in the Federal government. The topics will include issues of identifying the market failure, establishing the correct baseline, choosing the policy options, estimating benefits, estimating costs, and identifying transfers. The focus will on analyses of U.S. health, and safety regulations issued by the Department of Health and Human Services, with further examples from the Environmental Protection Agency (EPA) in the last two decades, but the concepts and practices we discuss are equally applicable to analyses conducted in other policy areas and in other countries or at a sub-national level. The workshop will be structured as an overarching presentation with examples from past RIAs used as a practical examples to be discussed by the participants.

This workshop is intended for both economists and other practitioners who have a working knowledge of Benefit-Cost Analysis and the general concept of measuring welfare effects. This working knowledge will then be applied to the Regulatory Impact Analysis context. The presenters are seasoned practitioners with substantial experience in conducting these analyses for federal regulatory actions.

Presenters:

• Aliya Sassi
• Lizzi Quin
• Chris Dockins
• Charles Griffiths
• Aaron Kearsley

Benefit-Cost Analysis for Beginners

This short course will provide an introduction for 'beginners' who have not previously had formal instruction in BCA. It is designed to help those who encounter BCA to better understand its purpose and methods as well as those who are curious about how it might be useful in their work. Although some prior exposure to economics would be helpful, the workshop is designed to be accessible to a general audience. Upon completion of the workshop, attendees should have a clear understanding of the purpose, underlying concepts, strengths, and weaknesses of BCA.
 
The workshop will compare BCA to other analytical approaches commonly employed by policy analysts to put it into perspective. It will also introduce and explain a number of key BCA concepts including standing (whose costs and benefits count), incremental costs and benefits (clear alternatives to current policy), opportunity cost (what we give up to do the alternative), willingness to pay (how much people value the impacts of the alternative), 'shadow prices' (monetizing impacts), discounting (taking account of the timing of costs and benefits), and sensitivity analysis (taking account of uncertainty). Several examples of BCAs will be distributed prior to the workshop to provide illustrations of concepts and facilitate discussion among attendees.

Presenters:

• Glenn C. Blomquist
• David L. Weimer