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How Accurate Is CBA?

Explore how accurate Cost-Benefit Analysis is in predicting net benefits. Detailed probability density functions at time 0 and t along with actual net benefits. Study from Boardman, Mallery & Vining.

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How Accurate Is CBA?

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  1. Twenty How Accurate Is CBA?

  2. Figure 20-1Illustrative Probability Density Functions of the Present Value of Net Benefits at Time 0,Time t, and the Actual Net Benefits, NBT.Source: Anthony E. Boardman, Wendy L. Mallery, and Aidan R. Vining, “Learning from Ex Ante/Ex Post Cost-Benefit Comparisons: The Coquihalla Highway Example,” Socio-Economic Planning Sciences 28(2) 1994, 69–84. Reprinted with kind permission from Elsevier ScienceLtd, The Boulevard, Langford Lane, Kidlington OX5 19GB, UK.

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