Richard O Zerbe
Biographic Data
| ID | 204379 |
|---|---|
| NAME | Richard O Zerbe |
| GIVEN NAMES | Richard |
| FAMILY NAME | O Zerbe |
| SIGNATURE | ZERBE R O |
| AFFILIATIONS | University of Washington |
| VERIFIED | No |
| TOTAL WORKS | 20 |
| TOTAL CITATIONS | 35 |
| WORKS AS AUTHOR | 18 |
| WORKS AS EDITOR | 2 |
| FIRST PUBLICATION YEAR | 1988 |
| LATEST PUBLICATION YEAR | 2025 |
| H-INDEX | 3 |
Letter from Former SBCA Presidents and JBCA Editors to Oira Administrator
The Consent Justification for Benefit–Cost Analysis
This paper provides a Consent Justification for benefit–cost analysis (BCA). The Consent Justification is based on a tendency toward actual compensation. A substantial justification for using BCA as a tool is the actual Pareto test, called the Consent Justification, in combination with the net present value criterion for individual projects. The traditional justification, the potential compensation test (PCT), is unsatisfactory on several grounds…
Consumer’s Guide to Regulatory Impact Analysis
Regulatory impact analyses (RIAs) weigh the benefits of regulations against the burdens they impose and are invaluable tools for informing decision makers. We offer 10 tips for nonspecialist policymakers and interested stakeholders who will be reading RIAs as consumers. 1. Core problem: Determine whether the RIA identifies the core problem (compelling public need) the regulation is intended to address. 2. Alternatives: Look for an objective, poli…
Bureaucratic Benefit-Cost Analysis and Policy Controversy
Critiques of benefit-cost analysis (BCA) are usually made on theoretical or methodological grounds; however, understanding how BCA is actually used in decision-making processes is critical if BCA is to inform policy-making. Our paper examines how the implementation of BCA within policy decision-making processes can serve to increase, rather than alleviate, controversy. This runs contrary to the standard assumption that BCA improves decision-makin…
The most appropriate discount rate
The social opportunity cost of capital discount rate is the appropriate discount rate to use when evaluating government projects. It satisfies the fundamental rule that no project should be accepted that has a rate of return less than alternative available projects, and it ensures that worthy projects satisfy the potential Pareto test. The social time preference approach advocated by Moore et al. fails to satisfy either of these criteria even in …
Scitovsky reversals in benefit-cost analysis with normal goods
An abstract is not available for this content so a preview has been provided. As you have access to this content, a full PDF is available via the ‘Save PDF’ action button
Scitovsky Reversals and Practical Benefit-Cost Analysis
The possibility of preference reversals according to the Kaldor-Hicks (KH) criterion in benefit-cost analysis has concerned economists since Scitovsky (1941) first published his results. Lawyers and philosophers have argued that the potential of reversals calls the use of benefit-cost analysis into question, implying elimination of its use. We demonstrate that reversals occur only with inferior goods in the case of static production possibilities…
Appropriate Discounting for Benefit-Cost Analysis
In order to be sensible about what discount rate to use one must be clear about its purpose. We suggest that its purpose is to help select those projects that will contribute more net benefits than some other discount rate. This approach, which is after all the foundation for benefit-cost analysis, helps to reconcile different suggested procedures for determining the discount rate. We suggest that the social opportunity cost of capital (SOC) is s…
Calculating the Social Opportunity Cost Discount Rate
Two comments in this issue of the Journal address our recent article in Volume 2, Issue 2. The fundamental issue with both comments is that they confuse the financial rate of return with the opportunity cost rate of return and therefore advocate for an inappropriate basis on which to calculate the government discount rate. That is, both comments confuse the financial cost of funds, or the borrowing rate, with the economic opportunity cost of fund…
Research in Law and Economics
Written by leading experts in the field, each chapter in this book examines in depth a topic in law and economics. John Connor begins by describing and evaluating the results of his extensive survey of reports of cartel overcharges. Dennis Weisman models the price effects of mergers that not only increase concentration in the relevant market but also increase the merged firms' participation in other, complementary markets. Malcolm Coate and Mark …
Research in Law and Economics, Volume 22
An aggregate measure for benefit–cost analysis
A preference for an aggregate measure
Should moral sentiments be incorporated into benefit-cost analysis? An example of long-term discounting
Culture and Fairness in the Development of Institutions in the California Gold Fields
Earlier accounts of the creation of property rights in the California gold fields ignored culture and are incomplete. We argue that culture matters in solving collective-action problems. Such problems in the California gold fields were solved through reliance on cultural focal points. Focal points included individualism, equality, respect for property, and rewards commensurate to work. Cultural concepts of fairness served to create norms and inst…
The failure of market failure
The concept of market failure was originally presented by economists as a normative explanation of why the need for government expenditures might arise. Gradually, the concept has taken on the form of a full-scale diagnostic tool frequently employed by policy analysts to determine the exact scope and nature of government intervention. For some time, economists have known that the market failure idea is conceptually flawed. The authors of this art…
Is cost‐benefit analysis legal? Three rules
When benefit-cost analysis produces a result that is objectionable does this mean that the technique is objectionable? It means only that the technique cannot rise above the individual and community values on which it rests. That is, values in benefit-cost analysis rest in large measure on law. An understanding of what values count and whose values count and why they count cannot then be separated from law. This understanding of value obviates mo…
Is cost-benefit analysis legal? Three rules
When benefit-cost analysis produces a result that is objectionable does this mean that the technique is objectionable? It means only that the technique cannot rise above the individual and community values on which it rests. That is, values in benefit-cost analysis rest in large measure on law. An understanding of what values count and whose values count and why they count cannot then be separated from law. This understanding of value obviates mo…
Discounting Procedures for Environmental (And Other) Projects
Jonathan A. Lesser, Richard O. Zerbe, Discounting Procedures for Environmental (And Other) Projects: A Comment on Kolb and Scheraga, Journal of Policy Analysis and Management, Vol. 13, No. 1 (Winter, 1994), pp. 140-156
Rawlsian difference principles and economic utilitarianism
Culture and Fairness in the Development of Institutions in the California Gold Fields
Earlier accounts of the creation of property rights in the California gold fields ignored culture and are incomplete. We argue that culture matters in solving collective-action problems. Such problems in the California gold fields were solved through reliance on cultural focal points. Focal points included individualism, equality, respect for property, and rewards commensurate to work. Cultural concepts of fairness served to create norms and inst…
Consumer’s Guide to Regulatory Impact Analysis
Regulatory impact analyses (RIAs) weigh the benefits of regulations against the burdens they impose and are invaluable tools for informing decision makers. We offer 10 tips for nonspecialist policymakers and interested stakeholders who will be reading RIAs as consumers. 1. Core problem: Determine whether the RIA identifies the core problem (compelling public need) the regulation is intended to address. 2. Alternatives: Look for an objective, poli…
Discounting Procedures for Environmental (And Other) Projects
Jonathan A. Lesser, Richard O. Zerbe, Discounting Procedures for Environmental (And Other) Projects: A Comment on Kolb and Scheraga, Journal of Policy Analysis and Management, Vol. 13, No. 1 (Winter, 1994), pp. 140-156
Appropriate Discounting for Benefit-Cost Analysis
In order to be sensible about what discount rate to use one must be clear about its purpose. We suggest that its purpose is to help select those projects that will contribute more net benefits than some other discount rate. This approach, which is after all the foundation for benefit-cost analysis, helps to reconcile different suggested procedures for determining the discount rate. We suggest that the social opportunity cost of capital (SOC) is s…
The most appropriate discount rate
The social opportunity cost of capital discount rate is the appropriate discount rate to use when evaluating government projects. It satisfies the fundamental rule that no project should be accepted that has a rate of return less than alternative available projects, and it ensures that worthy projects satisfy the potential Pareto test. The social time preference approach advocated by Moore et al. fails to satisfy either of these criteria even in …
Scitovsky reversals in benefit-cost analysis with normal goods
An abstract is not available for this content so a preview has been provided. As you have access to this content, a full PDF is available via the ‘Save PDF’ action button
Should moral sentiments be incorporated into benefit-cost analysis? An example of long-term discounting
Rawlsian difference principles and economic utilitarianism
Discounting Procedures for Environmental (And Other) Projects
Jonathan A. Lesser, Richard O. Zerbe, Discounting Procedures for Environmental (And Other) Projects: A Comment on Kolb and Scheraga, Journal of Policy Analysis and Management, Vol. 13, No. 1 (Winter, 1994), pp. 140-156
Is cost‐benefit analysis legal? Three rules
When benefit-cost analysis produces a result that is objectionable does this mean that the technique is objectionable? It means only that the technique cannot rise above the individual and community values on which it rests. That is, values in benefit-cost analysis rest in large measure on law. An understanding of what values count and whose values count and why they count cannot then be separated from law. This understanding of value obviates mo…
Is cost-benefit analysis legal? Three rules
When benefit-cost analysis produces a result that is objectionable does this mean that the technique is objectionable? It means only that the technique cannot rise above the individual and community values on which it rests. That is, values in benefit-cost analysis rest in large measure on law. An understanding of what values count and whose values count and why they count cannot then be separated from law. This understanding of value obviates mo…
The failure of market failure
The concept of market failure was originally presented by economists as a normative explanation of why the need for government expenditures might arise. Gradually, the concept has taken on the form of a full-scale diagnostic tool frequently employed by policy analysts to determine the exact scope and nature of government intervention. For some time, economists have known that the market failure idea is conceptually flawed. The authors of this art…
Culture and Fairness in the Development of Institutions in the California Gold Fields
Earlier accounts of the creation of property rights in the California gold fields ignored culture and are incomplete. We argue that culture matters in solving collective-action problems. Such problems in the California gold fields were solved through reliance on cultural focal points. Focal points included individualism, equality, respect for property, and rewards commensurate to work. Cultural concepts of fairness served to create norms and inst…
Should moral sentiments be incorporated into benefit-cost analysis? An example of long-term discounting
An aggregate measure for benefit–cost analysis
A preference for an aggregate measure
Research in Law and Economics
Written by leading experts in the field, each chapter in this book examines in depth a topic in law and economics. John Connor begins by describing and evaluating the results of his extensive survey of reports of cartel overcharges. Dennis Weisman models the price effects of mergers that not only increase concentration in the relevant market but also increase the merged firms' participation in other, complementary markets. Malcolm Coate and Mark …
Research in Law and Economics, Volume 22
Appropriate Discounting for Benefit-Cost Analysis
In order to be sensible about what discount rate to use one must be clear about its purpose. We suggest that its purpose is to help select those projects that will contribute more net benefits than some other discount rate. This approach, which is after all the foundation for benefit-cost analysis, helps to reconcile different suggested procedures for determining the discount rate. We suggest that the social opportunity cost of capital (SOC) is s…
Calculating the Social Opportunity Cost Discount Rate
Two comments in this issue of the Journal address our recent article in Volume 2, Issue 2. The fundamental issue with both comments is that they confuse the financial rate of return with the opportunity cost rate of return and therefore advocate for an inappropriate basis on which to calculate the government discount rate. That is, both comments confuse the financial cost of funds, or the borrowing rate, with the economic opportunity cost of fund…
Scitovsky Reversals and Practical Benefit-Cost Analysis
The possibility of preference reversals according to the Kaldor-Hicks (KH) criterion in benefit-cost analysis has concerned economists since Scitovsky (1941) first published his results. Lawyers and philosophers have argued that the potential of reversals calls the use of benefit-cost analysis into question, implying elimination of its use. We demonstrate that reversals occur only with inferior goods in the case of static production possibilities…
The most appropriate discount rate
The social opportunity cost of capital discount rate is the appropriate discount rate to use when evaluating government projects. It satisfies the fundamental rule that no project should be accepted that has a rate of return less than alternative available projects, and it ensures that worthy projects satisfy the potential Pareto test. The social time preference approach advocated by Moore et al. fails to satisfy either of these criteria even in …
Scitovsky reversals in benefit-cost analysis with normal goods
An abstract is not available for this content so a preview has been provided. As you have access to this content, a full PDF is available via the ‘Save PDF’ action button
Bureaucratic Benefit-Cost Analysis and Policy Controversy
Critiques of benefit-cost analysis (BCA) are usually made on theoretical or methodological grounds; however, understanding how BCA is actually used in decision-making processes is critical if BCA is to inform policy-making. Our paper examines how the implementation of BCA within policy decision-making processes can serve to increase, rather than alleviate, controversy. This runs contrary to the standard assumption that BCA improves decision-makin…
Consumer’s Guide to Regulatory Impact Analysis
Regulatory impact analyses (RIAs) weigh the benefits of regulations against the burdens they impose and are invaluable tools for informing decision makers. We offer 10 tips for nonspecialist policymakers and interested stakeholders who will be reading RIAs as consumers. 1. Core problem: Determine whether the RIA identifies the core problem (compelling public need) the regulation is intended to address. 2. Alternatives: Look for an objective, poli…
The Consent Justification for Benefit–Cost Analysis
This paper provides a Consent Justification for benefit–cost analysis (BCA). The Consent Justification is based on a tendency toward actual compensation. A substantial justification for using BCA as a tool is the actual Pareto test, called the Consent Justification, in combination with the net present value criterion for individual projects. The traditional justification, the potential compensation test (PCT), is unsatisfactory on several grounds…
Letter from Former SBCA Presidents and JBCA Editors to Oira Administrator
Economics (16 works) · Political science (12 works) · Computer Science (10 works) · Positive economics (10 works) · Law (9 works) · Actuarial science (8 works) · Economic and Environmental Valuation (8 works) · Law (8 works) · Cost–benefit analysis (7 works) · Law and economics (7 works)