Soundbites: Benefit-Cost Analysis
Scan brief descriptions of initiatives and work conducted by our center community and our decision science colleagues across the globe.
Prior to issuing a major health, environmental, or safety regulation, U.S. government agencies are expected to assess how benefits and costs are distributed across disadvantaged and advantaged groups, in addition to estimating total costs and benefits. This review found that agencies provided little information on this distribution and discusses several reasons for this inattention.
In global health, interventions that impose costs per disability-adjusted life year (DALY) averted of less than three times gross domestic product per capita (GDPpc) are often considered cost-effective, and of less than one times GDPpc are often considered very cost-effective. This article explores the conceptual foundation and derivation of these thresholds and their implications, as well as options for improvement.
Work by CHDS researchers contributed to the 2023 U.S. Office of Management and Budget's substantial revisions to Circular A-4, which provides guidance on evaluating major regulations. These revisions will have profound effects on how agencies estimate and evaluate the benefits and costs of alternative policies. Related news: U.S. Updates Economic Evaluation Guidance
Determining how to prioritize spending on health interventions, particularly in resource-limited settings, poses many challenges. In this video, Dean Jamison interviews Lawrence H. Summers about his experience addressing this challenge, beginning with the 1993 World Bank World Development report and continuing through the Lancet Commission on Investing in Health.
Mathematical models used to evaluate the health and economic impact of pan-tuberculosis regimens rely on accurate treatment outcomes and costs. To inform the development of such regimens, this analysis compared the outcomes of a pan-tuberculosis regimen with current treatments for rifampicin-susceptible and rifampicin-resistant tuberculosis across high-burden countries using published data.
COVID-19 policies are fraught with trade-offs. In this article, researchers provide their perspective on how policymakers can use economic evaluation methods to organize and weigh these trade-offs. Such evaluation can aid policymakers in being more transparent about the logic that underlies these difficult decisions. Read the article and listen to the author interview podcast.