CLASSIFICATION OF THE MAIN TYPES OF COST-BENEFIT ANALYSIS
Abstract
The article is devoted to the study of one of the most relevant and widely used tools of the decision-making process – cost-benefit analysis (CBA). The origins of the cost-benefit analysis since the 19th century and the output of this analysis to the level of use in government decision-making have been studied. Approaches to the classification of the main types of cost-benefit analysis by various factors are analyzed and systematized. There are different types of cost-benefit analysis depending on the time of its use in the analyzed project or economic course, namely: ex ante, ex post, in medias res CBA`s and CBA, which compares previous analyzes. Their weaknesses and limits of use in decision-making are generalized, the level of uncertainty necessary for each information of this analysis is analyzed. The types of cost-benefit analysis by areas of application are systematized, among which economic, financial and ecological CBA are studied. A comparison of such types of cost-benefit analysis as financial and economic is carried out. The main purpose, tools for each of these analyzes, as well as the main benefits, costs, prices and discount rates used in financial and economic CBA are identified. The advantages and disadvantages of each of these types of cost-benefit analysis are analyzed. The main areas of use of cost-benefit analysis, in particular the newest area – ecological CBA, are summarized and its role in project research is analyzed. The place of cost-benefit analysis in the decision-making process is outlined and its main types depending on the tools used in this process are identified, among which the following are highlighted: complex, index CBA and cost-effectiveness analysis. The strengths and weaknesses of these types of cost-benefit analysis are systematized, as well as the areas of application of complex and index analysis in the decision-making process are highlighted. The question of distinguishing between the analysis of economic efficiency and the cost-benefit analysis is investigated. Further directions of research on the issue of studying the cost-benefit analysis are identified.
References
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