IDEAS home Printed from https://ideas.repec.org/a/taf/jdevef/v4y2012i2p189-213.html
   My bibliography  Save this article

Cost-effectiveness analysis of education and health interventions in developing countries

Author

Listed:
  • Patrick J. McEwan

Abstract

High-quality impact evaluations, including randomised experiments, are increasingly popular, but cannot always inform resource allocation decisions unless the costs of interventions are considered alongside their effects. Cost-effectiveness analysis is a straightforward but under-utilised tool for determining which of two or more interventions provides a (non-pecuniary) unit of effect at least cost. This paper reviews the framework and methods of cost-effectiveness analysis, emphasising education and health interventions, and discusses how the methods are currently applied in the literature.

Suggested Citation

  • Patrick J. McEwan, 2012. "Cost-effectiveness analysis of education and health interventions in developing countries," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(2), pages 189-213, June.
  • Handle: RePEc:taf:jdevef:v:4:y:2012:i:2:p:189-213
    DOI: 10.1080/19439342.2011.649044
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/19439342.2011.649044
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/19439342.2011.649044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Caldes, Natalia & Coady, David & Maluccio, John A., 2006. "The cost of poverty alleviation transfer programs: A comparative analysis of three programs in Latin America," World Development, Elsevier, vol. 34(5), pages 818-837, May.
    2. World Bank, 2008. "Global Purchasing Power Parities and Real Expenditures : 2005 International Comparison Program," World Bank Publications - Books, The World Bank Group, number 21558.
    3. Abhijit V. Banerjee & Shawn Cole & Esther Duflo & Leigh Linden, 2007. "Remedying Education: Evidence from Two Randomized Experiments in India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1235-1264.
    4. Dean T. Jamison & Joel G. Breman & Anthony R. Measham & George Alleyne & Mariam Claeson & David B. Evans & Prabhat Jha & Ann Mills & Philip Musgrove, 2006. "Disease Control Priorities in Developing Countries, Second Edition," World Bank Publications - Books, The World Bank Group, number 7242.
    5. Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2005. "The Central Role of Noise in Evaluating Interventions That Use Test Scores to Rank Schools," American Economic Review, American Economic Association, vol. 95(4), pages 1237-1258, September.
    6. David Canning, 2006. "The Economics of HIV/AIDS in Low-Income Countries: The Case for Prevention," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 121-142, Summer.
    7. Levine, Phillip B. & Zimmerman, David J. (ed.), 2010. "Targeting Investments in Children," National Bureau of Economic Research Books, University of Chicago Press, number 9780226475813, September.
    8. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 61, pages 3895-3962, Elsevier.
    9. Urquiola, Miguel, 2001. "Identifying class size effects in developing countries : evidence from rural schools in Bolivia," Policy Research Working Paper Series 2711, The World Bank.
    10. Glewwe, Paul & Kremer, Michael & Moulin, Sylvie & Zitzewitz, Eric, 2004. "Retrospective vs. prospective analyses of school inputs: the case of flip charts in Kenya," Journal of Development Economics, Elsevier, vol. 74(1), pages 251-268, June.
    11. Michael Kremer, 2007. "What Works in Fighting Diarrheal Diseases in Developing Countries? A Critical Review," NBER Working Papers 12987, National Bureau of Economic Research, Inc.
    12. Emmanuel Jimenez & Harry Anthony Patrinos, 2009. "Can Cost–Benefit Analysis Guide Education Policy in Developing Countries?," Chapters, in: Robert J. Brent (ed.), Handbook of Research on Cost–Benefit Analysis, chapter 4, Edward Elgar Publishing.
    13. Paul Glewwe & Nauman Ilias & Michael Kremer, 2010. "Teacher Incentives," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 205-227, July.
    14. Jimenez, Emmanuel & Sawada, Yasuyuki, 1999. "Do Community-Managed Schools Work? An Evaluation of El Salvador's EDUCO Program," The World Bank Economic Review, World Bank, vol. 13(3), pages 415-441, September.
    15. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    16. Tan, Jee-Peng & Lane, Julia & Coustere, Paul, 1997. "Putting Inputs to Work in Elementary Schools: What Can Be Done in the Philippines?," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 857-879, July.
    17. Michael Kremer & Edward Miguel & Rebecca Thornton, 2009. "Incentives to Learn," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 437-456, August.
    18. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    19. Paul Glewwe & Sylvie Lambert, 2010. "Education Production Functions: Evidence from Developing Countries," Post-Print halshs-00754792, HAL.
    20. Alaka Holla & Michael Kremer, 2009. "Lessons from Randomized Evaluations in Education and Health," Working Papers 158, Center for Global Development.
    21. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
    22. Drummond, Michael F. & Sculpher, Mark J. & Torrance, George W. & O'Brien, Bernie J. & Stoddart, Greg L., 2005. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 3, number 9780198529453.
    23. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    24. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366, Elsevier.
    25. Vermeersch, Christel & Kremer, Michael, 2005. "Schools meals, educational achievement and school competition: evidence from a randomized evaluation," Policy Research Working Paper Series 3523, The World Bank.
    26. Phillip B. Levine & David J. Zimmerman, 2010. "Targeting Investments in Children: Fighting Poverty When Resources Are Limited," NBER Books, National Bureau of Economic Research, Inc, number levi09-1.
    27. Phillip B. Levine & David J. Zimmerman, 2010. "Introduction to "Targeting Investments in Children: Fighting Poverty When Resources are Limited"," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources Are Limited, pages 3-11, National Bureau of Economic Research, Inc.
    28. Miguel Urquiola, 2006. "Identifying Class Size Effects in Developing Countries: Evidence from Rural Bolivia," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 171-177, February.
    29. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597.
    30. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    31. Christopher Jepsen & Steven Rivkin, 2009. "Class Size Reduction and Student Achievement: The Potential Tradeoff between Teacher Quality and Class Size," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
    32. Bouillon, César P. & Tejerina, Luis, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications (Working Papers) 2801, Inter-American Development Bank.
    33. Michael Kremer & Sylvie Moulin & Robert Namunyu, 2003. "Decentralization: A cautionary tale," Natural Field Experiments 00290, The Field Experiments Website.
    34. Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 20(1), pages 29-55.
    35. World Bank, 2010. "Cost-Benefit Analysis in World Bank Projects," World Bank Publications - Reports 10481, The World Bank Group.
    36. Karthik Muralidharan & Venkatesh Sundararaman, 2011. "Teacher Performance Pay: Experimental Evidence from India," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 39-77.
    37. Henry M. Levin & Gene V. Glass & Gail R. Meister, 1987. "Cost-Effectiveness of Computer-Assisted Instruction," Evaluation Review, , vol. 11(1), pages 50-72, February.
    38. Bedi, Arjun S & Marshall, Jeffrey H, 1999. "School Attendance and Student Achievement: Evidence from Rural Honduras," Economic Development and Cultural Change, University of Chicago Press, vol. 47(3), pages 657-682, April.
    39. Greg J. Duncan & Jens Ludwig & Katherine A. Magnuson, 2010. "Child Development," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources Are Limited, pages 27-58, National Bureau of Economic Research, Inc.
    40. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylvia, Sean & Ma, Xiaochen & Shi, Yaojiang & Rozelle, Scott, 2022. "Ordeal mechanisms, information, and the cost-effectiveness of strategies to provide subsidized eyeglasses," Journal of Health Economics, Elsevier, vol. 82(C).
    2. Sebastian Hinde & Simon Walker & Hugues Lortie-Forgues, 2019. "Applying the three core concepts of economic evaluation in health to education in the UK," Working Papers 170cherp, Centre for Health Economics, University of York.
    3. Anna Musz-Pomorska & Marcin K. Widomski & Justyna Gołębiowska, 2020. "Financial Sustainability of Selected Rain Water Harvesting Systems for Single-Family House under Conditions of Eastern Poland," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    4. Yesim Tozan & Sicong Sun & Ariadna Capasso & Julia Shu-Huah Wang & Torsten B Neilands & Ozge Sensoy Bahar & Christopher Damulira & Fred M Ssewamala, 2019. "Evaluation of a savings-led family-based economic empowerment intervention for AIDS-affected adolescents in Uganda: A four-year follow-up on efficacy and cost-effectiveness," PLOS ONE, Public Library of Science, vol. 14(12), pages 1-13, December.
    5. Egana-delSol, Pablo & Contreras, Dante & Valenzuela, Juan Pablo, 2019. "The impact of art-education on human Capital: An empirical assessment of a youth orchestra," International Journal of Educational Development, Elsevier, vol. 71(C).
    6. Ebert, Cara & Flörchinger, Daniela & Frohnweiler, Sarah & Ihring, Stephanie & Rosadio Cayllahua, Karen Micaela, 2021. "Employment and income effects of skills development interventions: An impact evaluation of three employment promotion measures in Eastern Africa within GIZ's employment and skills for development prog," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 251877.
    7. Tewodaj Mogues & Valerie Mueller & Florence Kondylis, 2019. "Cost-effectiveness of community-based gendered advisory services to farmers: Analysis in Mozambique and Tanzania," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-32, March.
    8. Clair Null & Clemencia Cosentino & Swetha Sridharan & Laura Meyer, "undated". "Policies and Programs to Improve Secondary Education in Developing Countries: A Review of the Evidence," Mathematica Policy Research Reports 516e420e637c4851b15e6a3f6, Mathematica Policy Research.
    9. Xian Li & Stephen Jan & Lijing L Yan & Alison Hayes & Yunbo Chu & Haijun Wang & Xiangxian Feng & Wenyi Niu & Feng J He & Jun Ma & Yanbo Han & Graham A MacGregor & Yangfeng Wu, 2017. "Cost and cost-effectiveness of a school-based education program to reduce salt intake in children and their families in China," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-17, September.
    10. Manuel Romero-Hernández & Patricia Barber & Coraima Clavijo-Sánchez & Luis López-Rivero, 2021. "Training New Doctors in Mozambique. A Sustainable International Aid Health Program," IJERPH, MDPI, vol. 18(3), pages 1-10, February.
    11. Muhammad Tahir Khan Farooqi & Hafiz Muhammad Ather Khan & Ghulam Qambar, 2018. "Cost Effectiveness of Teachers Working at Government and Private Colleges," Global Social Sciences Review, Humanity Only, vol. 3(2), pages 345-357, June.
    12. Evans, David K. & Popova, Anna, 2016. "Cost-Effectiveness Analysis in Development: Accounting for Local Costs and Noisy Impacts," World Development, Elsevier, vol. 77(C), pages 262-276.
    13. Sean Sylvia & Xiaochen Ma & Yaojiang Shi & Scott Rozelle & C. -Y. Cynthia Lin Lawell, 2018. "Ordeal Mechanisms, Information, and the Cost-Effectiveness of Subsidies: Evidence from Subsidized Eyeglasses in Rural China," Papers 1812.00383, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miguel Urquiola, 2015. "Progress and challenges in achieving an evidence-based education policy in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-30, December.
    2. Benjamin A. Olken, 2020. "Banerjee, Duflo, Kremer, and the Rise of Modern Development Economics," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(3), pages 853-878, July.
    3. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    4. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    5. Masino, Serena & Niño-Zarazúa, Miguel, 2016. "What works to improve the quality of student learning in developing countries?," International Journal of Educational Development, Elsevier, vol. 48(C), pages 53-65.
    6. Abhijit V. Banerjee & Esther Duflo, 2009. "The Experimental Approach to Development Economics," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 151-178, May.
    7. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 61, pages 3895-3962, Elsevier.
    8. Glewwe, Paul & Kremer, Michael, 2006. "Schools, Teachers, and Education Outcomes in Developing Countries," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 16, pages 945-1017, Elsevier.
    9. Galiani, Sebastian & McEwan, Patrick J., 2013. "The heterogeneous impact of conditional cash transfers," Journal of Public Economics, Elsevier, vol. 103(C), pages 85-96.
    10. Orazem, Peter & Glewwe, Paul & Patrinos, Harry, 2007. "The Benefits and Costs of Alternative Strategies to Improve Educational Outcomes," Staff General Research Papers Archive 12853, Iowa State University, Department of Economics.
    11. Saavedra, Juan Esteban & Garcia, Sandra, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries: A Meta-analysis," Working Papers 921-1, RAND Corporation.
    12. Behrman, Jere R., 2010. "Investment in Education Inputs and Incentives," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4883-4975, Elsevier.
    13. Alejandro J. Ganimian & Richard J. Murnane, 2014. "Improving Educational Outcomes in Developing Countries: Lessons from Rigorous Impact Evaluations," NBER Working Papers 20284, National Bureau of Economic Research, Inc.
    14. Dang, Hai-Anh H & Sarr, Leopold & Asadullah, Niaz, 2011. "School Access, Resources, and Learning Outcomes: Evidence from a Non-formal School Program in Bangladesh," IZA Discussion Papers 5659, Institute of Labor Economics (IZA).
    15. Eduard Marinov, 2019. "The 2019 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 78-116.
    16. Eric A. Hanushek, 2008. "Incentives for Efficiency and Equity in the School System," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(s1), pages 5-27, May.
    17. G�nther Fink & Margaret McConnell & Sebastian Vollmer, 2014. "Testing for heterogeneous treatment effects in experimental data: false discovery risks and correction procedures," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 6(1), pages 44-57, January.
    18. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2008. "Conditional Cash Transfers in Education Design Features, Peer and Sibling Effects Evidence from a Randomized Experiment in Colombia," NBER Working Papers 13890, National Bureau of Economic Research, Inc.
    19. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    20. María Alzúa & Guillermo Cruces & Laura Ripani, 2013. "Welfare programs and labor supply in developing countries: experimental evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1255-1284, October.

    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevef:v:4:y:2012:i:2:p:189-213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJDE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.