Zerbe and Bellas

Chapter 3

1. Standing: whose benefits and costs count?

• What is the perspective of the study?
• Who is the client?
• Practical issues of standing are sometimes political

2. Transfers

• Between people with standing (e.g., tariffs)
• Between people with and without standing (e.g., mass transit options)
   

  	Bus	Rail
  Local Net Benefits	$40	$35
  Federal Subsidy		$10

3. Economic Impact Analysis

• Purpose: Estimates and sums all of the economic effects of an activity
• Circular flow of income: Revenues, costs, tax revenues, multiplier effects
• Substitution effects
• See Table 1
• e.g.., ASU Economic and Tax Revenue Impacts [PDF], Annual Impact of MLB on NC [PDF]

4. Weighting

• Implicit
• Explicit (sum of weights = n): w₁NB₁ - w₂NB₂ = wNB (see Table 2)
• Internal: NB₁ - w₂NB₂ = 0
• Weighting is problematic

5. Future Generations

• Time period
• Discounting

Table 2