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Education Policy in Developing Countries$
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Paul Glewwe

Print publication date: 2013

Print ISBN-13: 9780226078687

Published to Chicago Scholarship Online: May 2014

DOI: 10.7208/chicago/9780226078854.001.0001

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Comparative Cost-Effectiveness Analysis to Inform Policy in Developing Countries: A General Framework with Applications for Education

Comparative Cost-Effectiveness Analysis to Inform Policy in Developing Countries: A General Framework with Applications for Education

Chapter:
(p.285) 8 Comparative Cost-Effectiveness Analysis to Inform Policy in Developing Countries: A General Framework with Applications for Education
Source:
Education Policy in Developing Countries
Author(s):

Iqbal Dhaliwal

Esther Duflo

Rachel Glennerster

Caitlin Tulloch

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226078854.003.0008

This chapter discusses how comparative cost-effectiveness analyses can help inform policy in developing countries and the underlying methodological assumptions necessary for performing this kind of analysis. The chapter does not suggest a single set of “correct” assumptions, because the assumptions adopted in a cost-effectiveness analysis should reflect the perspective of the intended user. Rather, it discusses the issues surrounding many of these assumptions, such as what discount rate to use or whether to include cash transfers as program costs, and make recommendations on which assumptions might be reasonable given the perspective of a policymaker allocating resources between different projects. Examples are drawn from the education field to illustrate key issues and focus on specific applications to education. The hope is that this chapter will contribute to the development of a more standard methodology for cost-effectiveness analyses and a better understanding of how these analyses can be created and used.

Keywords:   Education, developing countries, cost-effectiveness, cost analysis, impact evaluations, education policy, public policy

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