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| Benefit Incidence Analysis× | Benefit-Cost Analysis for Policy× | |
|---|---|---|
| Field | Public Policy | Public Policy |
| Family | Process / pipeline | Process / pipeline |
| Year of origin≠ | 2000 | 2018 |
| Originator≠ | Public-finance and World Bank tradition; codified by Lionel Demery | Welfare-economics tradition; Boardman, Greenberg, Vining & Weimer (synthesis) |
| Type≠ | Distributional analysis of public expenditure | Monetised economic appraisal of policy options |
| Seminal source≠ | Demery, L. (2000). Benefit Incidence: A Practitioner's Guide. Washington, DC: World Bank, Poverty and Social Development Group, Africa Region. link ↗ | Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2018). Cost-Benefit Analysis: Concepts and Practice (5th ed.). Cambridge: Cambridge University Press. ISBN: 9781108415996 |
| Aliases≠ | BIA, Benefit Incidence, Expenditure Incidence Analysis | Cost-Benefit Analysis in Policy, Policy Benefit-Cost Analysis, Social Benefit-Cost Analysis, BCA |
| Related≠ | 4 | 3 |
| Summary≠ | Benefit incidence analysis (BIA) assesses how the benefits of public spending on services such as education, health and subsidies are distributed across population groups, typically ranked by income or consumption. It combines data on who uses publicly provided services, drawn from household surveys, with the unit cost or subsidy the government provides per user, to estimate how much of total public spending each group captures. The result reveals whether public expenditure is progressive — favouring the poor — or regressive, and is a standard tool for analysing the distributional fairness of fiscal policy. | Benefit-cost analysis (BCA), also called cost-benefit analysis, is a systematic appraisal that values all the material consequences of a policy in money, discounts them to present value, and recommends the option with the greatest net social benefit. Grounded in welfare economics and the compensation principle, it asks whether the gains to those who benefit exceed the losses to those who bear the costs across society as a whole. Set out comprehensively in Boardman, Greenberg, Vining and Weimer's standard textbook and operationalised by government guidance such as the UK Treasury's Green Book, BCA is the principal efficiency test applied to public investments and regulations. |
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