• James Hammitt


Positive and Normative Justifications for BCA: Implications for Conduct & Interpretation. James Hammitt, 2012, Paper. "What is the rationale for benefit-cost analysis (BCA)? The answer is critical for determining how BCA results should be interpreted, their implications for policy, and how BCA should be conducted. There are at least two possible bases for justifying BCA, positive and normative. The positive basis is that BCA identifies policy changes that satisfy the Kaldor-Hicks compensation test, so that those who benefit could hypothetically compensate those who are harmed..." Link Verified October 12, 2014