Research in law and economics : a journal of policy. Volume 23

Since 1979 Research in Law and Economics has been presenting original research that explores the extent to which the constraints of law explain economic behavior and the role of economics in forming the law. Leading scholars, including Kenneth Arrow, Kenneth Elzinga, Victor Goldberg, Jack Hirschliefer, Paul Joskow, and Vernon Smith, have chosen Research in Law and Economics as the right forum for presenting their research.Now published bi-annually by Elsevier, each issue of Research in Law and Economics focuses on a timely and relevant topic. Such topics have included economics of environmental policy, urban property rights, antitrust and evolutionary models in economics and law. This volume focuses on cost-benefit analysis and the law.Research in Law and Economics is now available online at ScienceDirect - full-text online from volume 19 onwards. List of Contributors......Page 1 Acknowledgments......Page 4 Introduction to Benefit-Cost Volume......Page 5 Introduction......Page 8 The Struggle for Methodological Consistency in BCA......Page 11 1970-1992: BCA under Reagan and Bush I......Page 12 1993-2001: BCA under Clinton......Page 14 2001 to the Present: Competing ‘‘Best Practice’’ Standards and the Political Manipulation of BCA under Bush II......Page 19 Where Does BCA Go From Here? A New Executive Order or an Independent, Non-governmental Task Force?......Page 27 First Determine What is Not Controversial in BCA......Page 30 The Hard Part: Achieving Consensus on the Devilish Details......Page 32 Valuing Human Lives and Health (Among Other Non-market Goods)......Page 33 Discounting......Page 34 Taking BCA’s Critics Seriously......Page 39 How an Independently Adopted Set of ‘‘Best Practice’’ Standards Might Affect Government Policy......Page 40 Conclusion......Page 43 Notes......Page 44 References......Page 50 The ‘‘Benefits’’ of Non-Delegation: Using the Non-Delegation Doctrine to Bring More Rigor to Benefit-Cost Analysis......Page 55 Introduction......Page 56 What Do Administrative Agencies Really Do and What Should They Do?......Page 58 The Non-Delegation Doctrine......Page 60 But How Can It Be Done?......Page 66 Notes......Page 68 Monographs......Page 71 Periodical and Journals......Page 72 Introduction......Page 73 A Simple Approach to Estimating Benefits......Page 76 Does the Sum of WTPs Have Normative Significance?......Page 77 Implications for the ‘‘Adjustment’’ Issue......Page 79 International Ventures and the Domain of Willingness to Pay......Page 81 Practical Considerations......Page 85 The Problem of Malevolent Third-Party Preferences......Page 86 Conclusions......Page 87 Notes......Page 89 References......Page 91 Introduction......Page 93 Major Current Uses of Microeconomic Performance Measures......Page 94 Generally Accepted Economic Principles......Page 97 Retrospective Assessment......Page 100 Improving Consistency: Reporting Format......Page 103 Improving Consistency: Scorecard for Economic Assessments......Page 104 Conclusions......Page 105 Acknowledgment......Page 106 References......Page 107 Welcome to the Data-Poor Real World: Incorporating Benefit-Cost Principles into Environmental Policymaking......Page 109 Economics and the Endangered Species Act......Page 111 The Economic Analysis of Critical Habitat Designation......Page 113 Critical Habitat Designation for West Coast Salmon and Steelhead......Page 119 Cost Estimation......Page 120 Benefit Estimation......Page 122 4(b)(2) Decision Process......Page 127 Acknowledgment......Page 133 Notes......Page 134 References......Page 136 Introduction......Page 137 Price-Support Subsidy Instruments......Page 139 Target Price and Loan Rate Responses......Page 140 Empirical Data......Page 143 Welfare Effects......Page 145 Loan-Rate Model......Page 147 Target-Price Model......Page 148 Domestic Supply Response......Page 149 Conclusion......Page 151 Notes......Page 152 References......Page 153 General Equilibrium in Vertical Market Structures: Overselling Versus Overbuying......Page 155 Introduction......Page 156 General Equilibrium Versus Partial Equilibrium Supply and Demand......Page 161 A Model with Related Input and Output Markets......Page 163 Competitive Behavior......Page 165 The Case of Monopoly with Related Goods......Page 166 The Case of Monopsony with Related Goods......Page 169 Market Power in Both Input and Output Markets......Page 174 Naked Overbuying as a Means of Exercising Market Power......Page 180 Conclusion......Page 181 Notes......Page 183 References......Page 186 The Chicago O’Hare Expansion: A Case Study of Administrative Manipulation of Benefit-Cost Principles......Page 188 Introduction......Page 189 BCA-I......Page 191 Between BCA-I and BCA-II......Page 195 BCA-II......Page 196 Notes......Page 202 References......Page 206 Notes on the Premia for Foreign Exchange and Nontradables Outlays......Page 208 Introducing Value-Added Taxation......Page 213 Introducing VAT Exclusions (Credits) for Investment Demand......Page 216 Sourcing in the Foreign Capital Market......Page 219 Sourcing from Both Domestic and Foreign Capital Markets......Page 222 Notes......Page 225 An Aggregate Measure for Benefit-Cost Analysis......Page 227 Background......Page 228 A Definition of Moral Sentiments......Page 229 Invariance......Page 230 Double Counting......Page 231 The Potential Compensation Problem with Including Moral Sentiments......Page 233 The PCT: Problems with Excluding Moral Sentiments......Page 235 Why An Aggregate Measure is Superior to KH......Page 237 An Extended Example: The Discount Rate Problem and Moral Harm......Page 238 Acceptability of KH and KHM......Page 241 Choices......Page 242 Conclusion......Page 243 Notes......Page 244 Acknowledgement......Page 246 References......Page 247 Should Benefit-Cost Analyses take Account of General Equilibrium Effects?......Page 250 Introduction......Page 251 Context......Page 253 Conceptual Background......Page 255 Approximations......Page 258 Modified Goulder-Williams Model and Calibration......Page 262 Results......Page 265 Implications......Page 269 Calibrating Non-Separable Preferences......Page 270 The Policy/Environment Response......Page 271 Notes......Page 272 References......Page 274 Introduction......Page 276 Theoretical Analysis......Page 278 Empirical Analysis......Page 279 Benefit-Cost Analyses of the Clean Air Act......Page 282 Benefit Analysis of the Clear Skies Initiative......Page 284 Office of Management and Budget......Page 286 An Alternative Approach - The Valuation of Life Expectancy......Page 287 A Life-time Utility Maximizing Individual with ‘‘Pluperfect’’ Annuities Markets......Page 289 A Simplified Model of Life Expectancy......Page 290 The Willingness to Pay for Life Expectancy and the Value of a Statistical Life......Page 292 The Marginal Willingness to Pay for Life Expectancy Curve Calibrated by VSL......Page 293 Conclusions and Directions for Research......Page 298 Notes......Page 299 References......Page 300 Valuing Complex Goods: or, Can You Get Anything Out of Experts Other Than a Decision?......Page 303 Introduction......Page 304 The Role of Information in Eliciting ’True’ Non-Use Values......Page 307 Complexity: The Processing of Information by Respondents......Page 308 The Optimal Provision of Information in CV Studies......Page 310 Information Provision through Alternatives to CV......Page 311 Modelling Resource Information and Willingness to Pay......Page 312 Environmental Resource Information and the Validity of WTP: An Application to RMLs......Page 314 Valuing Complex Goods: An Experiment......Page 316 The Delphi Study......Page 317 Ascertaining WTP for Remote Mountain Lakes: An Experiment......Page 321 The Contingent Market......Page 322 Information Levels......Page 323 Results......Page 324 Testing the Effect of Information on the Mean Willingness to Pay for RMLs......Page 326 Testing for Implicit Ranking of Lakes and Comparison with Expert Ordering......Page 328 Conclusion......Page 331 Notes......Page 333 References......Page 336 The Rise of Cost-Benefit Rationality as Solution to a Political Problem of Distrust......Page 338 References......Page 345 Biased Valuations, Damage Assessments, and Policy Choices: The Choice of Measure Matters......Page 346 The Measures and Different Valuations Resulting from Them......Page 347 The Choice of Measure......Page 350 The Value of a Positive Change......Page 351 Valuations and Reference States......Page 352 Discounting the Value of Future Gains and Future Losses......Page 355 Concluding Comments......Page 356 Notes......Page 357 References......Page 358 Since 1979'Research in Law and Economics'has been presenting original research that explores the extent to which the constraints of law explain economic behavior and the role of economics in forming the law. Leading scholars, including Kenneth Arrow, Kenneth Elzinga, Victor Goldberg, Jack Hirschliefer, Paul Joskow, and Vernon Smith, have chosen'Research in Law and Economics'as the right forum for presenting their research. Now published bi-annually, each issue of'Research in Law and Economics'focuses on a timely and relevant topic. Such topics have included economics of environmental policy, urban property rights, antitrust and evolutionary models in economics and law. This volume focuses on cost-benefit analysis and the law, whereas the next special issue will concentrate on corporate finance Since 1979 Research in Law and Economics has been presenting original research that explores the extent to which the constraints of law explain economic behavior and the role of economics in forming the law. Leading scholars, including Kenneth Arrow, Kenneth Elzinga, Victor Goldberg, Jack Hirschliefer, Paul Joskow, and Vernon Smith, have chosen Research in Law and Economics as the right forum for presenting their research. Now published bi-annually, each issue of Research in Law and Economics focuses on a timely and relevant topic. Such topics have included economics of environmental policy, urban property rights, antitrust and evolutionary models in economics and law. This volume focuses on cost-benefit analysis and the law, whereas the next special issue will concentrate on corporate finance Explores the extent to which the constraints of law explains economic behavior and the role of economics in forming the law. This title focuses on such topics that includes economics of environmental policy, urban property rights, antitrust and evolutionary models in economics and law. It focuses on cost-benefit analysis and the law.