Benefit-Cost Analysis in Disease Control Priorities, Third Edition

Authors: Angela Chang, Sue Horton, Dean Jamison


 A variety of economic methods is used in the health sector. Other chapters in this volume summarize the findings from Disease Control Priorities (third edition) (DCP3) concerning cost-effectiveness analysis (CEA) and extended cost-effectiveness analysis (ECEA) (Horton 2017; Verguet and Jamison 2017). This chapter summarizes the findings concerning benefit-cost analysis (BCA).  

BCA has long been used for the analysis of public policy. The United States (U.S.) Secretary of the Treasury first used it in 1808, and it became mandatory for use in the U.S. Army Corps of Engineers in 1936. The U.S. Bureau of the Budget first issued guidelines for its use in 1952.