Abstract
Distributional analysis provides a challenge to benefit-cost analysis (BCA). Standard BCA treats all parties equally and a distributional analysis alters that premise. Distributional analysis studies the ways in which distribution of funds affects different social classes based on economic or social status. With respect to BCA, distributional analysis can change the way standing is measured and reweight the effects for different social groups. Therefore, one approach to distributional analysis in BCA is to alter who has standing. For instance, Chap. 7 presents a BCA of the National Flood Insurance Program (NFIP) where the only party with standing is the federal government. Other standing restrictions can be created for different analyses.
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References
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Bin O, Bishop JA, Kousky C (2011) Redistributional effects of the National Flood Insurance Program. Technical Report DP 11-14, Washington
Farrow S (2011) Incorporating equity in regulatory and benefit-cost analysis using risk-based preferences. Risk Anal 31(6):902–907
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Howard, J.P. (2016). Distributionally Weighted Analysis. In: Socioeconomic Effects of the National Flood Insurance Program. SpringerBriefs in Political Science. Springer, Cham. https://doi.org/10.1007/978-3-319-29063-8_6
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DOI: https://doi.org/10.1007/978-3-319-29063-8_6
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Online ISBN: 978-3-319-29063-8
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