Cost-Effectiveness Analysis: Methods and Applications

Henry M. Levin, Patrick J. McEwan

SAGE, 2001 - Business & Economics - 308 pages

This Second Edition of Cost-Effectiveness Analysis continues to provide the most current, step-by-step guide to planning and implementing a cost analysis study.

Henry M. Levin and Patrick J. McEwan use detailed and varied examples from studies and articles, ranging from education to public health, to introduce the principles and practice of cost-effectiveness analysis. The authors take account of both the costs and the effects of selecting alternatives, and suggest methods of minimizing the costs of research. New to this edition: expanded coverage of cost effectiveness from types of technique to use, to how to interpret the data; the latest information on cost benefits analysis and how to relate it to outcome measures; in-depth chapter-end exercises to enable readers to sharpen their ability to evaluate policy options and program effectiveness; feedback appendix for readers to evaluate their responses to exercises; comprehensive bibliography of methodological sources on cost analysis and educational settings grouped by category.

This thorough volume primes the reader to deal with any evaluation situation by studying cost-effective analysis in relation to cost-benefit analysis, cost-utility analysis, and cost-feasibility analysis.

Contents

• Introduction to Cost Analysis: 1
• List of Examples: 7
• 1 Costs Effects and CostEffectiveness Ratios for Primary: 14
• 5 A CostUtility Analysis of Alternative Reading Programs: 20
• 3 Costs Utilities and CostUtility Ratios of Strategies: 23
• Establishing an Analytic Framework: 31
• 1 Assessing Primary and Secondary Audiences: 38
• The Concept and Measurement of Costs: 43
• 1 Why Should Volunteers Be Considered: 50
• Placing Values on Ingredients: 59
• 1 The Perils of Using Shortcuts Instead: 64
• 1 Annualization Factors for Determining Annual Cost: 68
• 2 A Cost Analysis of the Perry Preschool Program Part 2: 72
• 2 Ingredient Costs of the Perry Preschool Program: 75
• Analyzing Costs: 77
• 1 Determining Who Pays the Costs: 84
• 2 Annualized Costs for a Hypothetical Program: 86
• 2 Estimating Program Costs When a Program: 96
• Summary: 103
• Selected CostEffectiveness Studies: 110
• 2 A Randomized Controlled PretestPosttest Experiment: 121
• 1 Evaluation Designs for Estimating: 126
• 2 A CostEffectiveness Analysis of Two Math Curricula: 134
• 4 An Application of Multiway Sensitivity Analysis: 144
• Summary: 151
• 1 A CostBenefit Analysis of: 164
• 3 How Much Is It Worth to Attend: 173
• Discounting Benefits: 174
• Accounting for Uncertainty: 181
• 4 The Rate of Return to Additional Years of Schooling: 182
• CostUtility Analysis: 189
• 1 A Simple Multiattribute Utility Function: 193
• 2 QualityAdjusted LifeYears in Health Research: 204
• 4 A CostUtility Analysis of Special Education: 213
• The Use of Cost Evaluations: 217
• 1 Making Decisions With CostEffectiveness Findings: 226
• This: 238
• 3 A CostEffectiveness League Table: 242
• Appendix A: 249
• Appendix B: 265
• 96: 267
• References: 285
• Index: 299

About the author

Henry M. Levin is the Director of the Center for Benefit Cost Studies in Education, the William H. Kilpatrick Professor of Economics and Education at Teachers College, Columbia University, and the David Jacks Professor of Higher Education and Economics, Emeritus, at Stanford University. He has been engaged in cost-effectiveness and benefit-cost studies in education and other fields since 1970. He is the author of 22 books and about 300 scholarly articles on these topics as well as others in the economics of education and educational policy. Patrick J. McEwan is a Professor of Economics at Wellesley College and the Director of Latin American Studies at Wellesley College. His research interests include the impact and cost evaluation of education and social policy in Latin America, especially Chile and Honduras. His work has been published in the American Economic Review, the Journal of Public Economics, Educational Evaluation and Policy Analysis, and other journals of economics and education policy. For more information on his research, visit www.patrickmcewan.net.

Bibliographic information

• Title: Cost-Effectiveness Analysis: Methods and Applications; Cost-effectiveness Analysis: Methods and Applications, Patrick J. McEwan; Volume 4 of New perspectives on evaluation
• Authors: Henry M. Levin, Patrick J. McEwan
• Edition: illustrated
• Publisher: SAGE, 2001
• ISBN: 0761919341, 9780761919346
• Length: 308 pages
• Subjects: Business & Economics / Accounting / Managerial; Business & Economics / General; Reference / Research; Social Science / Methodology; Social Science / Research