Journal of Economic Literature
Book Reviews
2026-08-28
Ilyana Kuziemko of National Bureau of Economic Research reviews “New Foundations of Cost-Benefit Analysis” by Matthew D. Adler, Eric A. Posner,. The EconLit Abstract of the reviewed work begins “Reconceptualizes the idea of cost-benefit analysis (CBA) and presents practical implications for how government agencies should undertake these studies. Discusses the traditional economic case for CBA and why it has failed. Provides philosophical foundations for CBA. Presents a defense of CBA in comparison with alternative decision procedures. Explores the political and institutional context for administrative decision procedures. Describes ways in which textbook CBA needs to be modified. Addresses recurrent objections to CBA. Adler is Professor of Law at the University of Pennsylvania. Posner is Professor of Law at the University of Chicago. Index.”