COST – BENEFIT ANALYSIS GENERAL FRAMEWORK: CONCEPTS AND KEY ELEMENTS

Abstract

This research is focused on the general framework of cost-benefit analysis, emphasizing its concepts and key elements that ensure a proper use of the method taking into account the limited character of public resoursces. Since the decisions process on public resources’allocation aims at enhancing the social decision related to efficient allocation of public resources wich are often reduced, the instrument used in the selection process of alternative policies, programs, projects or regulations is cost - benefit analysis (CBA). Although in practice the analysis involves several complex economic and financial calculations, economists sometimes resort to methods of empirical study. In this respect, we considered necessary to identify and analyze the elements and key concepts used to achieve a proper cost-benefit analysis.