• Corpus ID: 251066983

An Axiomatic Framework for Cost-Benefit Analysis

  title={An Axiomatic Framework for Cost-Benefit Analysis},
  author={Ganesh Karapakula},
In recent years, the Marginal Value of Public Funds (MVPF) has become a popular tool for conducting cost–benefit analysis; the MVPF relies on the ratio of willingness-to-pay for a policy divided by its net fiscal cost. TheMVPF gives policymakers important information about the equity–efficiency trade-off that is not necessarily conveyed by absolute welfare measures. However, I show in this paper that the usefulness of MVPF for comparative welfare analysis is limited, because it suffers from… 



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