A Study on the Model for Cost-Benefit Analysis with System Dynamics of an Apartment Project

Abstract

The cost-benefit analysis is a technique for assisting with decision about the use of society`s scare resources. There exists no detailed m, assessment like cost-benefit analysis. But recently, many policy analysts criticized the merit of cost-benefit analysis. It is because partial or approximate estimates of benefit and cost might be more dangerous than helpful. The purpose of this study is to overcome the limit of traditional cost-benefit analysis. For this purpose, we used the system dynamics approach for setting up new cost-benefit analysis, which we named that `Dynamics Cost-Benefit Analysis`. The usefulness of `Dynamics Cost-Benefit Analysis` is as follows; structural causal relationship between cost factors and benefit factors, understanding the long-term behavior of systems economic feasibility. By using the model for cost-benefit analysis with SD (system dynamics) proposed, it is possible to review the feasibility oflimited relevance to the apartment project. The model for cost-benefit analysis with SD in this paper has proven a framework in which we classify justification for feasibilityof the apartment project.