Cost-Benefit Analysis Flashcards
Opportunity Costs (simplified)
The benefits you could have received by taking an alternative action
Opportunity Costs
The cost of an alternative that must be forgone in order to pursue a certain action
Opportunity Costs Example
Money you could have made at a job but are instead spending that time to go to class or do homework
Cost-Benefit Analysis
Comparing the costs of the program to its benefits
Question by social scientists
Where should we spend our effort?
Question by policy-makers
Where should we spend our money?
Question by tax-payers
How much is this going to cost me?
Purpose of Cost-Benefit Analysis
Provides accountability; compare the economic advantages of alternative programs; shows policy-makers that programs are valuable
Conducting a Cost-Benefit Analysis
Two-step process:
1. Identify programs that have high-quality evaluation
2. “Monetize” the costs and benefits of each program
Monetize the Costs
Training, salary, materials, incentives
Potential Costs
Materials, copying costs, cell phones, equipment, computers, curricula, training, travel expenses, personnel expenses, participant compensatio
Potential Benefits
less ATOD drug use, fewer arrests, higher test scores, less disruptive behavior, higher well-being, greater education, fewer teen pregnancies, better cognitive skills, better social skills, ability to regulate emotions, fewer violent/aggressive behaviors, less domestic violence, decrease in suicide/suicide attempts, increases earning
Potential Outcomes
Crime, Education, Substance Abuse, Health
NFP Example (Cost)
Very expensive, $7-9k per family per year, Nurses salary biggest cost, also: training costs, manual, travel costs
NFP (How it’s payed for)
PA Commission on Crime and Delinquency, Governor’s Community Partnership for Safe Children, CO: received a huge tobacco payout from settlement, all of that went to NFP
