Cost-Effectiveness Analysis as an Evaluation Tool

Cost Effectiveness of a Complementary Reading Program

“…Several different approaches to identifying costs are discussed in the literature; we elected to follow the model set forth by Levin and his colleagues (Levin and McEwan, 2001). Dubbed the "ingredients approach," thisapproach requires researchers to identifyelements required for any particular intervention, placing monetary values on each of those ingredients (Levin & McEwan, 2001).…”

“…Dubbed the "ingredients approach," thisapproach requires researchers to identifyelements required for any particular intervention, placing monetary values on each of those ingredients (Levin & McEwan, 2001). The program (as it was funded) was a three-year, development, and research activity with multiple phases and various activities.…”

“…Traditional cost effectiveness studies typically categorize costs into personnel, facilities, equipment and materials, other program inputs, and regular client input (Levin & McEwan, 2001). Thus, we began this process with an investigation of our itemized expenditures.…”

“…Cost Effective Analysis (CEA) assesses the effectiveness (E) of a particular program or intervention relative to the cost (C) of implementation.By combining information on effectiveness and costs, it is possible to determine which program provides a given level of effectiveness at the lowest/highest cost (Levin & McEwan, 2001). In other words, E represents the impact evaluation in which effects are expressed as an average treatment in a sample of individuals.The costs of an intervention, C, reflects the costs of additional resources used in the intervention, which include any resource with their appropriate estimate of the "opportunity cost".In other words, "using resources in one way, we are giving up the ability to use them in another way, so a cost has been incurred" (Levin & McEwan, 2001).…”

“…Farrell and Heyneman (1989) also noted that a well-designed teacher's guide could be a very effective form of in-service teacher training. Even though research has demonstrated that access to reading materials and properly trained teachers contribute to the effectiveness of early grade reading programs (Sailors et al, 2014), lingering questions exist around the cost effectiveness of programs as an efficient way of using educational resources (Levin & McEwan, 2001). …”