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1.6. Outline of the Book

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This volume attempts to offer an up-to-date and broad discussion of economic evaluation of education programs. It is a significantly revised and expanded version of two earlier editions addressing the same topics by Levin (1975, 1983) and Levin and McEwan (2001). In some respects, the basics of the method have not changed since the first edition in 1983. The ingredients method is the same, as are the metrics that are intended to represent efficiency. However, there has been a broad expansion of applications for CE and BC. In addition, new methodological developments—in effectiveness and benefits measurement, approaches to cost data collection and analysis, and sensitivity testing—all represent rich topics for improving the use of the tools. These topics are included in this revision. Also, the evidence base on results has grown, and we offer a general review of this evidence. Most importantly, there is now a much greater recognition that economic evaluations can play an important role in both education research and policy formation. New material in this book reinforces the theme that economic evaluations are valuable methods for social scientists to apply.

The remainder of the book will be devoted to a presentation and discussion of the use of economic evaluations in education as well as a description of the principles and techniques for developing such analyses. The next chapter will discuss the decision context, audience, and particular issues that are pertinent to the choice of analysis, its implementation, and its presentation. Chapters 3 through 6 will address the nature of costs and their identification, measurement, and distribution. The reader should be aware that the discussion in these chapters applies equally well to all modes of cost analysis. That is, the differences among the modes are primarily on the outcomes side rather than the cost side. Chapters 7 and 8 focus on how to measure effects and how to perform CE analysis. In a parallel form, Chapters 9 and 10 focus on how to specify benefits and how to perform BC analysis. An essential element of economic evaluation is sensitivity testing and dealing with uncertainty. This topic is covered in Chapter 11. As a review, Chapter 12 provides a checklist for appraising the quality of economic evaluations. Finally, Chapter 13 considers how to link the evidence from economic evaluations to policy and decisionmaking. Each chapter includes exercises and discussion questions. Appendix A gives sample answers to even-numbered exercises at the end of each chapter.

Economic Evaluation in Education

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