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Nobel Laureates

The Measures of Economic Costs


Volume: Volume 2, No. 1

Issue: Spring 1971

Pages: pp. 396-400

Authors: Hirschel Kasper

Title: The Measures of Economic Costs

Abstract: Economists' advice regarding the probable costs of actions contemplated by regulated industries may not be of much practical use for regulatory commissions. The sticky point is how to compute correctly the foregone alternative value of the allocated resources. This paper was revised while the author was visiting as a Senior Research Fellow in the Department of Social and Economic Research, University of Glasgow, under a grant from the Center for Environmental Studies. The comments of Robert Piron are appreciated.