Thomas van der Pol
Should CBA’s include a correction for the marginal excess burden of taxation?
Distributionally Weighted Cost-Benefit Analysis: From Theory to Practice
In CBA practices around the world, benefits are valued regardless of to whom they accrue. This disregards basic economic principles, like declining marginal utility of income, or inequality aversion. This paper argues that if redistribution matters, net benefits must be aggregated using a distributionally weighted CBA. →