Methodological nuances and pitfalls of benefit-cost analysis: A critique

Heal, Laird W.; McCaughrin, Wendy B.; Tines, Jeffrey

doi:10.1016/0891-4222(89)90007-3

Cited by 10 publications

(7 citation statements)

References 2 publications

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“…This ignores any indirect effects within the wider labour market, such as displacement of other non-disabled workers who may have occupied the job taken by the disabled person if they had not been supported by the programme. It has been the convention in most studies to assume no displacement in the market other than the direct competition for labour effected by the hiring of disabled workers (Heal et al, 1989). This may not be sustainable, however, when support to disabled people includes wage subsidies or tax incentives to employers.…”

Section: Cost-benefit Methodsmentioning

confidence: 99%

Financial Costs and Benefits of Two Supported Employment Agencies in Wales

Beyer

Kilsby

1998

Research Intellect Disabil

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The costs and financial benefits accruing from two employment agencies were analysed over the two years of their operation. The analysis determined the net costs for society as a whole, the taxpayer and the supported employees, when reductions in welfare benefit payments and costs to previous day services, and increases in tax were taken into account. The results indicated that supported workers generally benefited financially as a result of their uptake of paid work but that costs outstripped financial benefits for the taxpayer and society as a whole. There were significant differences in net costs between the two agencies. The results also indicated that the cost-benefit performance of the two agencies was improving over time, suggesting that the financial benefits of providing the service could ultimately outweigh the costs involved. This is in line with the general trends found in research in the USA, but progress towards a break-even point was much slower.

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Section: Cost-benefit Methodsmentioning

confidence: 99%

Financial Costs and Benefits of Two Supported Employment Agencies in Wales

Beyer

Kilsby

1998

Research Intellect Disabil

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“…Indeed, the most recent cost-efficiency analysis on supported employees with intellectual disabilities was published in 1998 (Cimera, 1998). Given that even slight changes in economic variables (e.g., how programs are funded, the rates at which taxes are calculated, or how much supported employees earn per hour) can alter a program's cost-efficiency, it is logical to assume that all of the previous research on this topic is now out-of-date (Heal, McCaughrin, & Tines, 1989).…”

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confidence: 99%

National Cost Efficiency of Supported Employees With Intellectual Disabilities: 2002 to 2007

Cimera

2010

American Journal on Intellectual and Developmental Disabilities

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The cost efficiency of supported employees with intellectual disabilities who were served by vocational rehabilitation agencies throughout the United State from 2002 to 2007 was explored. Findings indicate that, on average, supported employees with intellectual disabilities were cost-efficient from the taxpayers' perspective regardless of whether they had secondary disabilities. In addition, no changes in cost efficiency were found during the period investigated. The data, however, did demonstrate considerable variability in cost efficiency throughout the United States and its territories.

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“…Methodological problems are difficult to avoid in cost-benefit analyses in the disability field (Heal, McCaughrin, & Tines, 1989), and in the current study there may have been several concerns about the overall data analysis. However, these do not seem to be serious enough to challenge the final result.…”

Section: Concluding Comments Onmentioning

confidence: 92%

Behavioural Treatment of Challenging Behaviour: A Cost-benefit Analysis of a Service Delivery Model

et al. 1995

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In 1990 a number of regionally based Behaviour Intervention Support Teams (BISTs) were established in Victoria to assist agencies providing support to persons with an intellectual disability who exhibited challenging behaviour. A primary function of the BISTs was to conduct intensive interventions for clients with severe challenging behaviours. A cost-benefit analysis of these interventions was carried out. It was found that the existence of a severe challenging behaviour resulted in an additional cost to the service system of an average $40,510 per annum. In contrast, the cost of a single intensive intervention conducted by a BIST was $5,725. Allowing for the fact that not all intensive interventions were successful, it was still concluded that the interventions conducted by the BISTs were cost efficient. Methodological difficulties associated with the cost-benefit analysis are discussed.

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Methodological nuances and pitfalls of benefit-cost analysis: A critique

Cited by 10 publications

References 2 publications

Financial Costs and Benefits of Two Supported Employment Agencies in Wales

Financial Costs and Benefits of Two Supported Employment Agencies in Wales

National Cost Efficiency of Supported Employees With Intellectual Disabilities: 2002 to 2007

Behavioural Treatment of Challenging Behaviour: A Cost-benefit Analysis of a Service Delivery Model

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