WELLBYs, cost-benefit analyses and the Easterlin Discount

The current practise of cost-benefit analysis inWestern countries consists a collection various incompatible ideas and methodologies to obtain replicable numbers for the costs benefits major public spending plans. This paper describes main elements dominant methodology, which combines consumer producer surplus, price-taking, government-inputs-as-outputs, hedonic pricing externalities, issue-specific use partial or general equilibrium thinking. then discusses how that methodology can be augmented partially replaced by looking at prospective policies would change total number WELLBYs (life satisfaction-adjusted years life) population. ability WELLBY address complex externalities is illustrated Easterlin Discount, proposed reduction factor 75% on all estimates private consumption offset envy caused in others.