Abstract
Cost-Benefit Analysis (CBA) is typically portrayed as a technique for promoting efficiency in government. We don’t deny that CBA can be used in this manner, but instead focus on a different property of CBA, namely, its evolution from scholarly musings into a framing institution within which budgetary processes operate. The evolution of CBA into institutional status, moreover, shows the value of bringing a polyarchical perspective to bear on fiscal organization, wherein budgetary outcomes emerge through structured interaction among participants. CBA is a product of interaction within a political ecology, as distinct from being the product of some person’s optimizing choice.
Similar content being viewed by others
References
Alchian, A. A. (1950). Uncertainty, evolution, and economic theory. The Journal of Political Economy, 58, 211–221.
Anderson, L. G., & Settle, R. F. (1977). Benefit-cost analysis: A practical guide. Lexington, MA: D. C. Heath.
Backhaus, J. G., & Wagner, R. E. (1987). The cameralists: A public choice perspective. Public Choice, 53, 3–20.
Becker, G. S. (2000). A comment on the conference on cost-benefit analysis. The Journal of Legal Studies, 29, 1149–1152.
Daiches, D., Jones, P., & Jones, J. (1986). A hotbed of genius: The Scottish enlightenment, 1730–1790. Edinburgh: Edinburgh University Press.
Dam, K. W. (1977). The American fiscal constitution. University of Chicago Law Review, 44, 271–320.
De Jouvenal, B. (1961). The chairman’s problem. American Political Science Review, 55, 368–372.
Dupuit, J. (1844, 1952). On the measurement of utility of public works. International Economic Papers, 2, 83–110.
Ekelund, R. B., & Hébert, R. F. (1999). Secret origins of modern microeconomics: Dupuit and the engineers. Chicago: University of Chicago Press.
Fuguitt, D., & Wilcox, S. J. (1999). Cost-benefit analysis for public sector decision makers. Westport, CT: Quorum Books.
Hahn, R. W., & Dudley, P. (2004). How well does the government do cost-benefit analysis? Working Paper, AEI-Brookings Joint Center for Regulatory Studies.
Hahn, R. W., & Litan, R. E. (2007). The president’s new executive order on regulation. The Economists’ Voice, 4(2), Article 1.
Hanke, S., & Walker, R. (1974). Benefit-cost analysis reconsidered: An evaluation of the mid-state project. Water Resources Research, 10, 898–908.
Haveman, R. H., & Margolis, J. (Eds.). (1977). Public expenditure and policy analysis (2nd ed.). Chicago: Rand McNally.
Hitch, C. J., & McKean, R. N. (1960). The economics of defense in the nuclear age. Cambridge: Harvard University Press.
Howitt, P., & Clower, R. W. (2000). The emergence of economic organization. Journal of Economic Behavior and Organization, 41, 55–84.
Layard, R., & Glassiter, S. (Eds.). (1994). Cost-benefit analysis (2nd ed.). Cambridge: Cambridge University Press.
Majone, G., & Wildavsky, A. (1978). Implementation as evolution. In H. E. Freeman (Ed.), Policy studies annual review (Vol. 2). Beverly Hills, CA: Sage.
McKean, R. N. (1958). Efficiency in government through systems analysis. New York: Wiley.
Menger, C. (1892). On the origin of money. The Economic Journal, 2, 239–255.
Miller, J. C., & Yandle, B. (Eds.). (1979). Benefit-cost analyses of social regulation. American Enterprise Institute: Washington.
Mishan, E. J. (1976). Cost-benefit analysis. New York: Praeger.
Morgenstern, R. D. (1997). Economic analyses at EPA: Assessing regulatory impact. Washington, DC: Resources for the Future.
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge: Harvard University Press.
Nyborg, K. (1998). Some Norwegian politicians’ use of cost-benefit analysis. Public Choice, 95, 381–401.
Ostrom, V. (1973). The intellectual crisis in American public administration. University, AL: University of Alabama Press.
Ostrom, E. (2005). Understanding institutional diversity. Princeton: Princeton University Press.
Ostrom, V., Feeny, D., & Picht, H. (1988). Rethinking institutional analysis and development. San Francisco: ICS Press.
Posner, E. A. (2002). Controlling agencies with net-benefit accounts. University of Pennsylvania Law Review, 150, 1473–1488.
Prest, A. R., & Turvey, R. (1965). Cost-benefit analysis: A survey. The Economic Journal, 75(300), 683–735.
Resnick, M. (1994). Turtles, termites, and traffic jams: Explorations in massively parallel microworlds. MIT Press: Cambridge, MA.
Richardson, H. S. (2000). The stupidity of the cost-benefit standard. The Journal of Legal Studies, 29, 971–1003.
Robbins, L. (1952). The theory of economic policy in English classical political economy. London: Macmillan.
Samuels, W. J. (1966). The classical theory of economic policy. Cleveland: World.
Sassone, P. G., & Schaffer, W. A. (1978). Cost-benefit analysis: A handbook. New York: Academic Press.
Schmid, A. A. (1989). Benefit-cost analysis: A political economy approach. Boulder: Westview Press.
Schultze, C. L. (1977). The public use of private interest. Washington: Brookings Institution.
Wagner, R. E. (2005). Self-governance, polycentrism, and federalism: Recurring themes in Vincent Ostrom’s scholarly oeuvre. Journal of Economic Behavior and Organization, 57, 173–188.
Wagner, R. E. (2007). Fiscal sociology and the theory of public finance. Cheltenham, UK: Edward Elgar.
Weidenbaum, M. (1997). Regulatory process reform from Ford to Clinton. Regulation, 20(1), 20–26.
Weingast, B. R., & Marshall, W. J. (1988). The industrial organization of congress; or, why legislatures, like firms, are not organized as markets. The Journal of Political Economy, 96(1), 132–163.
Wildavsky, A. (1979). Speaking truth to power: The art and craft of policy analysis. Little, Brown: Boston.
Williams, A. (1972). Benefit-cost analysis: Bastard science? And/or insidious poison in the body politik? Journal of Public Economics, 1, 199–226.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Makowsky, M.D., Wagner, R.E. From scholarly idea to budgetary institution: the emergence of cost-benefit analysis. Const Polit Econ 20, 57–70 (2009). https://doi.org/10.1007/s10602-008-9051-7
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10602-008-9051-7