David, the cost/benefit calculations are a form of advocacy.  That was my 
point.  "Experts," of course, are often advocates as well -- pretending to 
offer scientific objectivity.

You, of all people, should be suspicious of cost/benefit since it was 
originally intended to "prove" the benefits of government projects; Now, it is 
mostly used to restrict government activity.

You are welcome to respond, then I will let the matter drop, because both of us 
are getting repetitive.

Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901

http://michaelperelman.wordpress.com

-----Original Message-----
From: [email protected] 
[mailto:[email protected]] On Behalf Of David B. Shemano
Sent: Monday, January 25, 2010 7:10 PM
To: Progressive Economics
Subject: RE: Re: [Pen-l] Cost/benefit analysis]

Michaell Perelman writes:

>> If the cost/benefit analysis had some objective basis, it would have more
>> credibility (ignoring questions about what should/should not be included,
>> it might have some basis.  It could be compared to a legal opinion.  A good
>> lawyer can argue either side.  Is it an act of irrational stubbornness to
>> resist a lawyer's brief?
>> 
>> In short, cost/benefit is not scientific at all.

I disagree for the following reasons, keeping with your analogy.  In the 
adversarial system, the legal brief is explicitly used for advocacy and is 
acknowleged by all parties as such. However, the purpose of advocacy is to 
persuade, and persuasion is rooted primarily in substance, not rhetoric.  
Therefore, it would be irrational stubborness for a trier of fact/law to ignore 
the content of a brief merely because the brief persuasively argues for a 
result that the trier does not like.

Further, the analogy to cost/benefit analysis is not the brief, but the expert 
report, which is presumably "objective" (to the extent it is not, it will lose 
credibility).  The expert makes certain assumptions and then reaches a 
conclusion.  The advocate then uses the report as part of its advocacy.  In 
other words, as I said before, the cost/benefit analysis is data that goes into 
the decision-making process, it is not the decision-making process.

I don't know what you mean by "some objective basis."  Hopefully, like all 
other expert reports, one can evaluate the analysis by its content -- are the 
assumptions sound, are the facts correct, etc.  If they are not, the analysis 
should be criticized on that ground, not on the mere fact that it is comparing 
costs and benefits.

David Shemano


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