Lecture 4 - CBA Flashcards
what is the input/output unit for CBA
input = monetary units
output = monetary units
what are 3 advantages of CBA?
-many different outcomes can be compared (because the outcomes are measured in monetary units)
-programs with similar and dissimilar outcomes can be compared
-easy to determine if benefit exceeds cost bc we’re always using monetary units
the advantages of CBA are disadvantages in….
CEA
What are 2 disadvantages in CBA?
-Hard to place economic values on medical outcomes
-no universal agreement on one standard method for placing economic values on medical outcomes
what 2 questions are extremely easy to recognize and address under CBA?
-will the benefits of a program exceed the cost of implementing it?
-which program will produce the greatest net beenfit
a very high benefit to cost ratio indicates…..
it produces a very high net benefit
what are the 4 categories of “benefits”
direct medical savings
direct nonmedical savings
indirect benefits (productivity)
intangible benefits (patient preferences, no pain or suffering)
what are the 4 steps in conducting CBA
- Define the research question
- Identify and value all costs (input)
- Identify and value all benefits (output)
- Sum all costs and benefits and present results
If B/C >1…..
benefits exceed costs
If B/C=1….
benefits = costs
if B/c <1…
benefits are less than costs
Where in an article can you find what type of study it is?
the end of intro should state the OBJECTIVE as well as the analysis
