24. Ezra J. Mishan (1917–2014)

Quah and Ng first discuss Ezra Mishan’s contributions to cost–benefit analysis, focusing on the appropriate set of individuals to be included, unconventional spillover effects such as ‘keeping up with the Joneses’, and the value of a statistical life. They then provide some qualifications to Mishan’s arguments questioning globalisation and immigration, concentrating on three commonly ignored benefits of a larger population. An increase in population, including as a result of immigration, need not reduce the per capita income due to the presence of increasing returns. Even if per capita income is reduced, existing citizens still gain economically through higher returns of factors complementary to the immigrating labour. Additionally, a larger population reduces the per capita costs of providing public goods, like defence and research.