Question

What is the impact of double counting?​

Answer 1

Explanation:

Two common pitfalls to be avoided in benefit-cost analysis are:

Double-counting of certain costs and benefits by including the same economic impact more than once, in what erroneously seem to be different measures

Including as benefits or costs monetary exchanges which are actually transfer payments, that is, transactions where money moves around without anything of economic value being created or consumed

Although these pitfalls may seem obvious, they sometimes assume subtle forms.