Topic 3 Topic 3 Topic 3 Topic 3 Topic 3

Basic Methods of Economic

Evaluating Proposal

Group 4 :
Pensona
Casulla
Olimba
What is Economic Evaluating Proposal?
• Economic Evaluation Proposal is the
comparative analysis/evaluation of two or
more interventions in terms of their cost and
consequences
• It is the evaluation or assessment of different
programs based on their input given v.s
results/outcomes generated
• Economic evaluation is also known as
economic appraisal
Importance of Economic Evaluations:

• At present, resources are being limited

while on the other hand, costs of programs
are rising in addition with more innovative
and technological advancements. Thus,
economic evaluation has become a
necessary and a dire need.
 Types/Methods of Economic Evaluation:
There are major 4 different types of economic
evaluation methods. They are:

Cost Effective Cost Minimization

Analysis (CEA) Analysis (CMA)

Cost Benefit Cost Utility

Analysis (CBA) Analysis (CUA)
0 Cost Benefit
1 Analysis (CBA)
• In this method of evaluation, cost of the intervention is compared
with the benefit incurred from the intervention
• Both costs and benefit is measured in terms of monetary units.
• The net benefit is measured as: Net benefit= Benefit – Costs
0 Cost Minimization
2 Analysis (CMA)
• In this method of analysis, costs of two or more interventions
achieving identical outcome is measured. The intervention incurring
the lowest cost is then chosen
• It should be strictly noted that the intervention can only be
conducted when the outcomes of the comparing interventions are
same
0 Cost Effective
3 Analysis (CEA)
• In this method of analysis, cost is measured against the
effectiveness of the intervention (effectiveness is the final
consequence)
• The consequences of the comparing interventions may vary here
(different than cost minimization analysis where the outcomes of
interventions were identical). However, these consequences can be
expressed in common natural units like life years gained, saved
years of life etc or improvement in functional status (units of
cholesterol, blood pressure etc.)
0 Cost Utility
Analysis (CUA)
4
• In this method of analysis, cost incurred in the intervention is
measured against the “utility” related to health
• Utility refers to the Quality Adjusted Life Years (QALY),
Disability Adjusted Life Years (DALY)
• It is also used to make policy level decisions
Thank You