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Cost–Benefit Analysis

Cost–benefit analysis is a research method used to analyze the economic impact of interventions and treatment programs. Cost–benefit analysis in its complete form requires the measurement of all costs associated with the delivery of specific interventions and all the benefits that occur as a result of the treatment. While cost–benefit analysis is considered to be the gold standard in cost analyses, it also shares features with cost allocation and cost-effectiveness. This entry presents some of these basic methods for analyzing intervention, treatment, and program costs, and continues with a discussion of full cost–benefit analysis.

Cost Allocation

All cost analysis is based on the assumption that the treatment produces a benefit to the recipient and is an effective means of intervention. If the treatment is not effective ...

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