Policy analysis Assignment Example | Topics and Well Written Essays - 500 words - 1

Policy analysis - Assignment ExampleFor instance, calculation of the costs and benefits that argon valued in executing a water project today is bound to change in the coming years.Consumer price index is the absolute measure of price levels of consumer proceedss whose calculation is base on the product type, region, and buying power of consumers. The price index is usually a pertinacious value that is set by a regulatory body, for instance, the department of labor in US. The value is based on a fixed weight price of goods that consumers purchase in every month (Adler & Posner, 2006). However, inflation is the measure of the increase in price levels in the economy in average terms. Its value is dependent on market forces since about economies operate under a free market system where forces of demand and supply play a crucial role. Therefore, the main reason why CPI overstates the value of inflation is because CPIs determination is done by an authorized body while inflation rate is determined by the market forces. The CPI trance is based on predictable parameters, and it is fixed for a period while inflationary changes are unpredictable.Indeed, stinting value of life is dependent greatly on how one maximizes on the potential loss indoors the earning system. The value of lost earnings affects individuals capacity for meeting certain life objectives collect to eminent constraints. As noted by various economists, lost time, leads to lost earnings that in turn expose one to diminishing life value. Therefore, the assertion that economic value of life should be based on the present value of lost earnings instead of current earnings is real. Statistical reports from various empirical studies also affirm the fact that lost earnings exposes individuals to serious risks. Lost time has gigantic negative economic connotations that can be mitigated through effective measures.Willingness-to-pay measures that are based on