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In the following table input CEA (cost-effectiveness analysis) and/or CBA (cost-benefit analysis) next to each statement that applies. CEA CBA Feature Helps regulators determine whether

In the following table input CEA (cost-effectiveness analysis) and/or CBA (cost-benefit analysis) next to each statement that applies.

CEA CBA Feature

Helps regulators determine whether or not to do a project

Typically involves discounting of future economic effects

Helps policy-makers choose among options or among alternative ways of achieving a goal.

Results are often given as multipliers that tell regulators how many jobs a policy will create.

Reveals the Pareto-optimal level of an externality

Takes uncertainty about the magnitude of effects into account

Focuses on the effect of a policy change on low-income communities
Tries to get the biggest bang for the buck (achieves a goal at the least cost or greatest net benefit)

May entail calculating the internal rate of return

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