Cost-benefit analysis is an analytic tool designed to promote economic efficiency in the allocation of scarce resources to public projects or technologies. The criterion of economic efficiency states that if those citizens who benefit from a project had to bear its entire cost, they would consider it worth paying for. Where projects are inefficient, those who benefit would reject the project if they were required to pay for it in its entirety.


Economic Evaluation Contingent Valuation Indoor Radon Contingent Valuation Method Health Care Programme 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Acton JP. Evaluating public programmes to save lives: the case of heart attacks. Santa Monica: The Rand Corporation, RAND Report R- 950-RC, 1973.Google Scholar
  2. Akennan J, Johnson FR, Bergman L Paying for safety: voluntary reduction of residential radon risks. Land Economics 1991; 67: 435–446.CrossRefGoogle Scholar
  3. Atkinson SE, Halvorsen R The valuation of risks to life: evidence from the market for automobileand Review of Economics and Statistics 1990; 72: 133–136.Google Scholar
  4. Becker GS. Human Capital. Chicago: University of Chicago Press, 1964.Google Scholar
  5. Berger MC, Blomquist GC, Kenkel D, Tolley GS. Valuing changes in health risks: a comparison of alternative measures. Southern Economic Journal 1987; 53: 967–84.CrossRefGoogle Scholar
  6. Blomquist G. Value of life saving: implications of consumption activity. Journal of Political Economy 1979; 87: 540–558.CrossRefGoogle Scholar
  7. Bush JW, Chen M, Patrick DL. Cost-effectiveness using a health status index: analysis of the New York State PKU screening programme. In Berg R (Ed.). Health status indexes. Chicago: Hospital Research and Educational Trust, 1973.Google Scholar
  8. Carson RT, Mitchell RC, Hanemann MW, Kopp RJ, Presser S, Ruud PA A contingent valuation study of lost passive use values resulting from the Exxon Valdez Oil Spill. Report to the General Attorney of the State of Alaska, 1992.Google Scholar
  9. Cummings RG, Brookshire DS, Schulze WD. Valuing environmental goods. New Jersey: Rowman and Allanheld, 1986.Google Scholar
  10. Dardis R The value of a life: new evidence from the marketplace. American Economic Review 1980;70:1077–1082.Google Scholar
  11. Daubed JT, Young RA Recreational demands for maintaining instream flows: a contingent valuation approach American Journal of Agricultural Economics 1981; 63: 666–676.Google Scholar
  12. Dublin Ll, L.otka M. The Money Value of a Man. New York: Ronald Press,1946.Google Scholar
  13. Dupuit JH. De la mesure de l’utilité des travaux publics. Annales des Ponts et Chaussees 1844. Translated by Barback RH in International Economic Papers 1952; 17: 83–110.Google Scholar
  14. Drummond MF, Stoddard GL, Torrance GW. Methods for the economic evaluation of health care programmes Oxford: Oxford Medical Publications, 1987.Google Scholar
  15. Gerking S, de Haan MH, Schulze W. The marginal value of job safety: a contingent valuation study. Journal of Risk and Uncertainty 1988; 1: 185–189.CrossRefGoogle Scholar
  16. Hicks JR. The foundation of welfare economics. Economic Journal 1939;49;696–712. Hicks JR The four consumer’s surpluses. Review of Economic Studies 1941; 11: 31–41.Google Scholar
  17. Johannesson M, Jönsson B, Borgquist L. Willingness to pay for antihypertensive therapy: results of a Swedish pilot study. Journal of Health Economics 1991; 10: 461–474.CrossRefGoogle Scholar
  18. Johannesson M, Johansson P-0, Kriström B, Gerdtham U-G. Willingness to pay for antihypertensive therapy: further results. Journal of Health Economics 1993; 12: 95–108.CrossRefGoogle Scholar
  19. Jones-Lee MW. The value of life: an economic analysis. London: Martin Robertson, 1976.Google Scholar
  20. Jones-Lee MW, Hammerton M, Philips PR The value of safety: results of a national sample survey. Economic Journal 1985; 95: 49–72.CrossRefGoogle Scholar
  21. Kaldor N. Welfare propositions of economics and interpersonal comparisons of utility. Economic Journal 1939; 49: 549–552.CrossRefGoogle Scholar
  22. Klayman HE, Francis JOS, Rosenthal G. Cost-effectiveness analysis applied to the treatment of chronic renal disease. Medical Care 1968; 6: 48–54.CrossRefGoogle Scholar
  23. Mishan EJ. Cost-benefit analysis. New York: Praeger, 1971.Google Scholar
  24. Mitchell RC, Carson RT. Using surveys to value public goods: the contingent valuation method. Washington DC: Resources for the Future, 1989.Google Scholar
  25. Portney PR Housing prices, health effects, and valuing reductions in risk of death Journal of Environmental Economics and Management 1981;8:72–78.Google Scholar
  26. Rice D. Estimating the cost of illness. American Journal of Public Health 1967; 57: 424–440.CrossRefGoogle Scholar
  27. Rosen S. The value of changes in life-expectancy. Journal of Risk and Uncertainty 1988; 1: 285–304.CrossRefGoogle Scholar
  28. Schelling TC. The life you save may be your own. In Chase SB (Ed.). Problems in public expenditure analysis. Washington D.C.: Brookings Institution, 1968.Google Scholar
  29. Smith RS, The feasibility of an ‘injury tax’ approach to occupational safety. Law and Contemporary Problems 1974; 38: 730–744.CrossRefGoogle Scholar
  30. Sugden R, Williams A The principles of practical cost-benefit analysis. Oxford: Oxford University Press, 1978.Google Scholar
  31. Thaler R, Rosen S. The value of saving a life: evidence from the market. In Terleckyj NE (Ed.). Household production and consumption. Cambridge MA: NBER, 1976.Google Scholar
  32. Tolley GS, Kenkel D, Fabian R Valuing health for policy: an economic approach. Chicago: University of Chicago Press, 1994.Google Scholar
  33. Viscusi WK. Labor market valuations of life and limb. empirical estimates and policy implications. Public Policy 1978; 26: 359–386.Google Scholar
  34. Viscusi WK, Magat WA, Huber J. Pricing environmental health risks: survey assessments of risk-risk and risk-dollar tradeoffs for chronic bronchitis. Journal of Environmental Economics and Management 1991; 21: 32–51.CrossRefGoogle Scholar
  35. Weisbrod B. Economics of Public Health: Measuring the Impact of Diseases. Philadelphia: University of Pennsylvania Press, 1961.Google Scholar
  36. Weinstein MC, Stason WB. Hypertension: a policy perspective. Cambridge, MA Harvard University Press, 1976. Williams A Economics of coronary artery bypass grafting British Medical Journal 1985; 291: 326–329.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1996

Authors and Affiliations

  • Magnus Johannesson
    • 1
  1. 1.Stockholm School of EconomicsSweden

Personalised recommendations