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Discussion Questions

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1 Typically, educational evaluations look at the effects of alternative interventions on student outcomes without considering the cost consequences. Under what circumstances would adopting the “most effective” alternative actually increase overall costs to the school district for any specific educational result relative to choosing a “less effective” alternative?

2 There have been many studies of the relation between enrollment levels in schools and school districts and the cost per student. These studies purport to show how cost varies with school size, and they attempt to determine the enrollment ranges in which costs are lowest. Do these studies meet the criteria for CE analysis?

3 Imagine a state introduces a new tax on soft drinks, and the tax revenues are earmarked for spending on education. Which level of education—preschool, elementary school, secondary school, college, or vocational training—should receive priority for public funding from these additional tax revenues?

4 What are the fundamental differences between CE and BC analyses? Provide examples of educational interventions where CE analysis is preferred. Provide examples of educational interventions where BC analysis is preferred.

Economic Evaluation in Education

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