Cost

Effectiveness
analysis
• Different ways to think about this • Is it cost
effective? • will the results hold in another
context or generalized to a larger population?
• Need to be able to compare the benefits: •
with the cost of the project
• or with the benefits of alternative use of funds
 Cost Effectiveness
Is a category of metrics that are used to measure
the results of strategies, programs, projects, The outcomes not measured in in monetary value
operations where benefits are non financial. It is are instead measure in its effectiveness.
used to measure results and compare alternative
strategies and approaches .

This measure of effectiveness of the outcome is

In CEA not all outcomes, not all costs and benefits then correlated in the measure of monetary value at
are measured in monetary terms. some costs thus forming a ratio between these two
units of measure.
 CEA is a
Effectiveness is systematic method
understood as of weighing
utility, referring to strengths and
the value of weaknesses of the
satisfying one’s alternatives of the
interest and given problem
preferences.
 INTRODUCING

STATESMAN COOPERATION
INCORPORATED
VS .
• Cost-effectiveness analysis is a method for
assessing the gains in health relative to the costs
of different health interventions. It is not the
only criterion for deciding how to allocate
resources, but it is an important one, because it
directly relates the financial and scientific
implications of different interventions.
• Like Cost−Benefit Analysis, Cost−Effectiveness
Analysis can be used either to assess the
expected impacts of alternative policy
measures before they are implemented, or to
assess the effectiveness of a policy measure
that is already in place
• CEA: Ratio of costs to effect on one outcome
• Summarizes complex program’s impacts as
simple ratio of costs/ effects, for a specific and
objective outcome
• Easily synthesizes information from multiple
evaluations