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These projects may be dams and highways or can be training programs and health care systems. The idea of this economic accounting originated with Jules Dupuit, a French engineer whose article is still worth reading.
This act required that the U. Corps of Engineers carry out projects for the improvement of the waterway system when the total benefits of a project to whomsoever they accrue exceed the costs of that project.
Thus, the Corps of Engineers had created systematic methods for measuring such benefits and costs. The engineers of the Corps did this without much, if any, assistance from the economics profession. It wasn't until about twenty years later in the 's that economists tried to provide a rigorous, consistent set of methods for measuring benefits and costs and deciding whether a project is worthwhile.
Some technical issues of CBA have not been wholly resolved even now but the fundamental presented in the following are well established. Principles of Cost Benefit Analysis One of the problems of CBA is that the computation of many components of benefits and costs is intuitively obvious but that there are others for which intuition fails to suggest methods of measurement.
Therefore some basic principles are needed as a guide. There Must Be a Common Unit of Measurement In order to reach a conclusion as to the desirability of a project all aspects of the project, positive and negative, must be expressed in terms of a common unit; i. This means that all benefits and costs of a project should be measured in terms of their equivalent money value.
A program may provide benefits which are not directly expressed in terms of dollars but there is some amount of money the recipients of the benefits would consider just as good as the project's benefits. For example, a project may provide for the elderly in an area a free monthly visit to a doctor.
The value of that benefit to an elderly recipient is the minimum amount of money that that recipient would take instead of the medical care. This could be less than the market value of the medical care provided.
It is assumed that more esoteric benefits such as from preserving open space or historic sites have a finite equivalent money value to the public.
Not only do the benefits and costs of a project have to be expressed in terms of equivalent money value, but they have to be expressed in terms of dollars of a particular time. This is not just due to the differences in the value of dollars at different times because of inflation.
A dollar available five years from now is not as good as a dollar available now. This is because a dollar available now can be invested and earn interest for five years and would be worth more than a dollar in five years.
This called the discounted value or present value of a dollar available t years in the future. When the dollar value of benefits at some time in the future is multiplied by the discounted value of one dollar at that time in the future the result is discounted present value of that benefit of the project.
The same thing applies to costs. The net benefit of the projects is just the sum of the present value of the benefits less the present value of the costs. The choice of the appropriate interest rate to use for the discounting is a separate issue that will be treated later in this paper.
For example, improvements in transportation frequently involve saving time. The question is how to measure the money value of that time saved.
The value should not be merely what transportation planners think time should be worth or even what people say their time is worth.An introduction to how issues about Africa are covered, the legacy of colonialism and some additional context for many of Africa’s woes.
This paper, coauthored with James S. Simkin in , was the Gestalt Therapy chapter in the edition of Corsini and Wedding's Current Psychotherapies (4th Edition). It appears here with the kind permission of the publisher, F.E.
Peacock, Publishers, Inc. of Itasca, Illinois. § Introduction to Transportation Technology (One-Half Credit), Adopted (a) General requirements.
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Communities of practice are formed by people who engage in a process of collective learning in a shared domain of human endeavor: a tribe learning to survive, a band of artists seeking new forms of expression, a group of engineers working on similar problems, a clique of pupils defining their identity in the school, a network of surgeons exploring novel.
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An information system is software that helps you organize and analyze data. This makes it possible to answer questions and solve problems relevant to the mission of an organization.