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CONSIDERATIONS BENEFIT-COST to Preventive Interventions |
WORKSHOP SUMMARY
Steve Olson and Kimber Bogard, Rapporteurs
Board on Children, Youth, and Families
INSTITUTE OF MEDICINE AND
NATIONAL RESEARCH COUNCIL
OF THE NATIONAL ACADEMIES
THE NATIONAL ACADEMIES PRESS
Washington, D.C.
THE NATIONAL ACADEMIES PRESS 500 Fifth Street, NW Washington, DC 20001
NOTICE: The workshop that is the subject of this workshop summary was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine.
This activity was supported by Contract/Grant No.13-103067-000-USP between the National Academy of Sciences and the MacArthur Foundation. The views presented in this publication do not necessarily reflect the views of the organizations or agencies that provided support for the activity.
International Standard Book Number-13: 978-0-309-30105-3
International Standard Book Number-10: 0-309-30105-X
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Suggested citation: IOM (Institute of Medicine) and NRC (National Research Council). 2014. Considerations in applying benefit-cost analysis to preventive interventions for children, youth, and families: Workshop summary. Washington, DC: The National Academies Press.
THE NATIONAL ACADEMIES
Advisers to the Nation on Science, Engineering, and Medicine
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. C. D. Mote, Jr., is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. C. D. Mote, Jr., are chair and vice chair, respectively, of the National Research Council.
PLANNING COMMITTEE ON STANDARDS FOR BENEFIT-COST ANALYSIS OF PREVENTIVE INTERVENTIONS FOR CHILDREN, YOUTH, AND FAMILIES1
JEANNE BROOKS-GUNN (Chair), Virginia & Leonard Marx Professor of Child Development, Columbia University
ANIRBAN BASU, Associate Professor and Director, University of Washington, Seattle
JANET CURRIE, Henry Putman Professor of Economics and Public Affairs, Princeton University School of Public and International Affairs
JORGE DELVA, Professor and Associate Dean for Research, School of Social Work, University of Michigan
ROSEANNE FLORES, Associate Professor of Psychology, Hunter College, City University of New York
J. DAVID HAWKINS, Endowed Professor of Prevention, School of Social Work, University of Washington, Seattle
LYNN KAROLY, Senior Economist, RAND Corporation
MELANIE LUTENBACHER, Associate Professor of Nursing and Medicine, Vanderbilt University
DAN ROSENBAUM, Senior Economist, Economic Policy Division, U.S. Office of Management and Budget
GARY VANLANDINGHAM, Director, Pew Charitable Trusts
Project Staff
KIMBER BOGARD, Project Director (from November 2013)
JOSHUA JOSEPH, Project Director (until November 2013)
WENDY KEENAN, Program Associate
DOUGLAS KANOVSKY, Senior Program Assistant
_____________________
1 Institute of Medicine planning committees are solely responsible for organizing the workshop, identifying topics, and choosing speakers. The responsibility for the published workshop summary rests with the workshop rapporteurs and the institution.
REVIEWERS
This workshop summary has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council’s Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published workshop summary as sound as possible and to ensure that the workshop summary meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the process. We wish to thank the following individuals for their review of this workshop summary:
Anirban Basu, University of Washington
Lynn A. Karoly, RAND Corporation
Irwin Sandler, Arizona State University
David L. Weimer, University of Wisconsin
Although the reviewers listed above have provided many constructive comments and suggestions, they did not see the final draft of the workshop summary before its release. The review of this workshop summary was overseen by Hugh H. Tilson, University of North Carolina at Chapel Hill. Appointed by the Institute of Medicine, he was responsible for making certain that an independent examination of this workshop summary was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this workshop summary rests entirely with the rapporteurs and the institution.
Contents
1 INTRODUCTION AND THEMES OF THE WORKSHOP
2 BENEFIT-COST ANALYSES: EXAMPLES FROM THE FIELD
The Washington State Institute for Public Policy
3 ASSESSING THE COSTS AND BENEFITS OF INTERVENTIONS
An Ingredients Approach to Costing Preventive Interventions
Cost Analysis for Planning Purposes
Valuing the Outcomes of Intervention
4 ISSUES TO CONSIDER IN BENEFIT-COST ANALYSIS
Identifying Causal Estimates by Research Design
Designing Error-Tolerant Studies
Deciding What Evidence to Include
Issues with Randomized Controlled Trial Designs
Increasing the Comparability of Benefit-Cost Analyses
