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slides23 - Intro Cost Benefit Analysis Valuation of...

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Unformatted text preview: Intro Cost Benefit Analysis Valuation of Outcomes Example of CBA Economic Evaluation Angela Fertig Spring 2010 Angela Fertig Economic Evaluation Intro Cost Benefit Analysis Valuation of Outcomes Example of CBA What is economic evaluation? If the government is going to take on a project or intervene, we need ways to compare the costs and benefits of the project/intervention for decision-making: I whether to take on a project or not I which of several possible projects is best Angela Fertig Economic Evaluation Intro Cost Benefit Analysis Valuation of Outcomes Example of CBA Prevention is often not cheaper than cure I Prevention targets more people than will ever get the disease, so even if per person prevention is cheaper, there are more people involved. I Some interventions aren’t very effective at changing behavior. I Prevention makes people live longer, thus increasing health care expenses, social security and Medicare, but not economic productivity (Not a reason to avoid prevention though.) Implications: I Need economic evaluation before decisions are made. I Careful economic evaluation should take into account the appropriate costs and benefits. (e.g. increased Medicare costs from people living longer maybe should not be included) Angela Fertig Economic Evaluation Intro Cost Benefit Analysis Valuation of Outcomes Example of CBA Costs of interventions Costs per Life -year Intervention ($1993) Childhood immunizations less than 0 Prenatal care for pregnant women less than 0 Influenza vaccine for all citizens 140 Mammography for women age 50 810 Random motor vehicle inspections 1,500 Water chlorination 4,200 Pneumonia vaccination 12,000 Strengthening of buildings in earthquake-prone areas 18 million From Box 4-1 in text....
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This note was uploaded on 01/18/2012 for the course HPAM 8600 taught by Professor Ferig during the Spring '11 term at UGA.

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slides23 - Intro Cost Benefit Analysis Valuation of...

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