Cost-effectiveness Analysis
Abstract
Cost-effectiveness analysis is a quantitative method of comparing the "return on investment" of a given policy (the desired results it produces, in relation to its cost), with other possible policies. This method makes it possible to estimate the effectiveness of a policy, i.e. its capacity to maximise a result criterion for each euro of public expenditure. It is useful for guiding public policy choices and the allocation of public expenditure within a given sector.
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