Working Paper: NBER ID: w30029
Authors: Nathaniel Hendren; Ben Sprung-Keyser
Abstract: This paper outlines the case for using the Marginal Value of Public Funds (MVPF) in empirical welfare analysis. It compares the MVPF approach with more traditional welfare metrics such as the Cost-Benefit Ratio and the Net Social Benefits criterion. It outlines the advantages of the MVPF approach relative to these metrics. In building the case for the MVPF, this paper also addresses several misconceptions about the MVPF that appear in recent literature.
Keywords: No keywords provided
JEL Codes: H0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| MVPF (D79) | social welfare (I38) |
| government expenditures (H59) | social welfare (I38) |
| MVPF (D79) | benefits per dollar of net government expenditure (H59) |
| MVPF (D79) | policy recommendations (D78) |
| MVPF (D79) | budget-neutral policy comparisons (H60) |
| traditional metrics (C80) | government savings as benefits (H55) |