Séverine Toussaert

This course is compulsory on the Executive MSc in Behavioural Science. This course is not available as an outside option.

This course aims to introduce students to the main concepts and tools of policy appraisal and project impact assessment. The course covers the following topics: 1) Architecture of Cost-benefit analysis for market and non-market goods; 2) Elicitation of monetary values through revealed and stated preference methods; 3) Adjustments for time discounting, risk and uncertainty; 4) Welfare analysis of policy interventions: efficiency, equity and asymmetric paternalism; 5) Evaluating welfare beyond monetary choices: the subjective well-being approach to valuation. The course offers practical examples and applications to key policy sectors, such as health and the environment.

17 hours and 30 minutes of lectures and 5 hours of seminars in the LT.

Students will be expected to produce 1 piece of coursework in the LT.

• HM Treasury (2011) The Green Book: Appraisal and policy evaluation in central government. London, UK.

• Ahuja A., Baird S., Hicks J.H., Kremer M., Miguel E., and Powers S. (2015), “When Should Governments Subsidize Health? The Case of Mass Deworming,” World Bank Economic Review, 1-16.

• Bayoumi A. M. (2004), “The Measurement of Contingent Valuation for Health Economics,” Pharmacoeconomics; 22 (11): 691-700.

• List J.A., Berrens R.P., Bohara A.K., Kerkvliet J. (2004), “Examining the Role of Social Isolation of Stated Preferences,” American Economic Review, 94(3), 741-752.

• Diamond P.A. and Hausman J.A. (1994), “Contingent valuation: Is some number better than no number?” Journal of Economic Perspectives, 8: 45-64.

• Bernheim D. and Rangel A. (2008), “Behavioral Public Economics”

• Allcott H. and Sunstein C.R. (2015), “Regulating Internalities,” Journal of Policy Analysis and Management, 1–8.

• Gruber, J.H., and Mullainathan S. (2005), “Do Cigarette Taxes Make Smokers Happier?”, B.E. Journal of Economic Analysis and Policy: Advances 5 (1): 1-43.

Take home exam (100%) in the ST.