Guidance on Assessing Distributional Effects

12-30-2021

Although OMB requires an analysis of distributional effects in conjunction with Benefit-Cost Analysis (BCA), this is rarely performed in practice. MITRE found a lack of federal guidance and approved methodologies available. This report is a step-by-step methodology for identifying distributive effects that is scaled from simple to more comprehensive and complex, depending on the government action. Although not comprehensive, conducting a distributive effects analysis in conjunction with BCA moves the needle towards the consideration of social equity instead of omitting it completely.