From: "William Dickens"
> Fred,
>     You completely misunderstand my point. If a cost benefit analysis
> is presented it makes very clear what the assumptions are that lead to
> the policy conclusions.

Bill,
I don't think I completely misunderstood.  I do apologize, however, as I
allow myself to gravitate from your purely academic response back into the
real world.  Your point is well taken, but my mind was on the earlier
question.
> > Is there a practical way for policy makers to assess the reliability
> > and objectivity of CBA?

I thought this was an excellent question.  How many policy makers do you
know that are actually able to understand the necessary variables to arrive
at a meaningful assumption in order to evaluate the analysis?  I work in
government.  CBA is seldom used.  I would like to see it used more often,
but data are relatively sparse due to the disjointed accounting systems and
other road blocks (E.g. - collective bargaining agreements).  Seldom does a
cost center actually represent the work being performed.

-Fred Childress

----- Original Message -----
From: "William Dickens" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, February 13, 2003 9:33 PM
Subject: RE: Cost benefit analysis


> Fred,
>     You completely misunderstand my point. If a cost benefit analysis
> is presented it makes very clear what the assumptions are that lead to
> the policy conclusions. Thus any debate of the question is going to be
> much better informed and much more closely focused on the issues that
> matter.  Its going to be more logical. I am not saying that a bad CBA
> trumps a good verbal argument in deciding an issue. I'm saying that as a
> starting point for a debate a bad CBA is still a good point of departure
> because it spells out the assumptions and logic that the person
> presenting it is making.
> - - Bill Dickens
>
> >>> [EMAIL PROTECTED] 02/13/03 05:37PM >>>
> On Thu, 13 Feb 2003 15:52:43 -0500, "William Dickens"
> <[EMAIL PROTECTED]> said:
> > Any CBA is better than no CBA - - even a badly skewed one. Its the
> same
> > argument for formalizing theory in economics. It makes clear what
> your
> > assumptions and logic are and makes it easy to identify areas of
> > agreement and disagreements between opponents on an issue. - - Bill
> > Dickens
>
> Did I just read what I think I read?
> So here is the scenario - a *badly skewed* CBA is used by misguided
> (do-gooder) policy makers to influence legislation by defeating a more
> reasonable (logical) argument.  This CBA had more traction (the bad
> science environmentalists had a well funded propaganda campaign) and
> the
> resultant legislation ended up killing millions of people
> (refrigerators
> in third world countries no longer able to keep food cold or
> pesticides
> no longer available to kill mosquitos which carried disease).  I find
> it
> hard to agree that "any CBA is better than no CBA."
>
> -Fred Childress
>
>
> > >>> [EMAIL PROTECTED] 02/13/03 01:57PM >>>
> > One problem with applying CBA to policy formulation is ensuring
> > reliability
> > and objectivity.  Too often, CBA is manipulated for predetermined
> > policy
> > positions.  EPA once produced a Regulatory Impact Analysis that
> > contended
> > that benefits from the phaseout of CFCs are $8 trillion to $32
> > trillion.  In
> > such cases, CBA does more to confound, rather than illuminate,
> > rational
> > policy formulation.
> >
> > Is there a practical way for policy makers to assess the reliability
> > and
> > objectivity of CBA?
> >
> > Walt Warnick
> >
> > -----Original Message-----
> > From: Driessnack, John [mailto:[EMAIL PROTECTED]]
> > Sent: Thursday, February 13, 2003 9:56 AM
> > To: [EMAIL PROTECTED]
> > Cc: [EMAIL PROTECTED]
> > Subject: RE: Cost benefit analysis
> >
> >
> >
> > In defense you can say that almost all of the weapons related
> > spending
> > (Procurement and RDT&E budget - almost half of the budget when you
> > consider
> > the spare purchases) is accomplished having gone through some CBA in
> > the
> > process of deciding the approach to develop, procure, and then
> maintain
> > the
> > equipment.  An Analysis of Alternative is required along with
> > estimates
> > (actually by several layers of organizations).
> >
> >
> >
> > The other source to look at would be the Federal Acquisition
> > Regulations
> > (FAR).  This policy drives use of CBA for certain purchases.  So you
> > could
> > estimate off of this policy!
> >
> >
> >
> > jdd
> >
> >
> >
> > John D Driessnack, PMP, CCE/A
> >
> > Professor, Defense Acquisition University
> >
> > PMT-250/352, DAU Risk/Tools Subject Matter Expert
> >
> > DAWIA PM, Acq Logi, FM Level III
> >
> > NE-Capital Campus, Faculty Department
> >
> > Program Management and Leadership
> >
> > 9820 Belvoir Rd, Building 205,  Room 115B
> >
> > Ft Belvoir, VA 22060-5565
> >
> > 703-805-4655 (DSN-655)
> >
> > [EMAIL PROTECTED]
> >
> > FAX 703-805-3728
> >
> >
> >
> > -----Original Message-----
> > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]
> > Sent: Tuesday, February 11, 2003 11:16 PM
> > To: [EMAIL PROTECTED]
> > Subject: Cost benefit analysis
> >
> >
> >
> > Does anyone know how often CBA is actually used in making policy?
> > What
> > percent of the federal budget (or state or local) has been
> determined
> > by
> > CBA?
> >
> > Cyril Morong
> >
> >
> >
> Yours in Liberty,
> Fred Childress
>
> LNC Region 5 Alt Representative - http://www.LP.org
>
> "Even if you're on the right track, you'll get run over if you just
> sit
> there."
> -Will Rogers
>
>
>
>


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