Economic Evaluation of Design
Decisions concerning design are increasingly being made on economic grounds. This paper explores links between Economics and design. It examines the implications for evaluating design using the micro-macro economics distinction that exists in economics. The paper suggests the need for adopting different methodological constructs for conducting micro and macro economic evaluation of design. Adopting different methodological constructs is proposed based on at least two grounds. First, the distinction between Micro and Macroeconomics focuses on different aspects of design. Second, the tools used for the conduct of evaluations are different. Cost flow analytical tools are necessary for conducting microeconomic evaluation of design. Use of impact analysis is needed for macroeconomic evaluation of design. Finally, the paper suggests that such differences in methodology have far reaching implications for future designs.
Keywords: Economic Tools, Decision Making
Assocaite Professor of Economics, School of Law and Business