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Cost analysis : Beyond impacts

Related Document
Frame of Image problem: Impacts alone are not enough for policy-makers
Rigorous IE is getting more frequent but cost analysis is rarer
Very little cost-benefit analysis in WB projects and even less in education and health “How much will it cost?” Impact alone does not allow a policy-maker to choose between options for interventions
Objectives of this session
1 2
The problem
Framework and definition
Measuring effects
3
4
5 6
Measuring costs Comparing CE of different interventions Common pitfalls
The problem: Which costs are we talking about?
HD interventions involve a range of actors: the government, NGOs, clients (beneficiaries), affected non-clients
Cost of “free” volunteers or client time? Transfer payments (cash transfers)? Measurement of positive/negative externalities?
Cost-Benefit Analysis (CBA)
Quantifies the benefits and costs of an activity, in the same metric (money)
o
to respond: is the intervention producing sufficient benefits to outweigh the costs? Is society richer after making this investment, and to inform the worth of a single intervention and compare interventions within and across sectors when benefits can be monetized.
o
Cost-Benefit Analysis (CBA)
Net present value:
o o o
Bt and Ct : incremental benefits/costs at year t t: benefits an Bt d costs may occur between now (t=0) and n years r: the discount rate.

Internal rate of return: rate of return at which NPV=0

B-C ratio:
CBA (example)
Intervention Cost/person/year Benefit:cost ratio
1.Breast-feeding promotion
US$ 0


Full Text
Title Cost analysis
Similar Titles
Sub Title

Beyond impacts

Material Type Proceedings
Author(English)

Benedicte de la Briere

Publisher

[Washington, DC]:The World Bank

Date 2012
Event

The Regional Impact Evaluation Workshop

Pages 39
Language English
File Type Documents
Original Format pdf
Subject Official Aid < Others
Holding KDI; KDI School