Cost–Benefit Analysis

Abstract

compatibility of projects in and macroeconomic policies. This analysis helps how are on the and private sector are applicable. In this regard, effects of public projects are addressed at the national (macro) while those of private projects are evaluated at the business profitability (micro) level. CBA identifies the issue to be resolved, and puts forward alternative solutions. It then measures potential benefits, costs and other effects of each alternative systematically and consistently, and submits results to the decision - makers' attention. CBA is a decision - making instrument. The analysis shows clearly what the effective policy is. The suggested policy making no regulation, regulations more regulations. for example, the Financial Services Authority (FSA) in the UK, which is responsible for regulating financial markets, is also held responsible, by the Financial Services and Markets Act, for conducting the CBA and publishing the results of analysis in the form of report.