Compare and contrast a cost-benefit analysis and cost-effectiveness analysis.
QQUESTION TO ANSWER: (W2 DQ2 PUB 650)
Compare and contrast a cost-benefit analysis and cost-effectiveness analysis. Summarize the purpose, strengths, limitations, and assumptions that underlie each approach. Discuss how to apply these approaches in public health policy development, citing an example for each from the research literature.
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Cost-benefit analysis (CBA) and Cost-effectiveness analysis (CEA) are two techniques that are used interchangeably. They sound the same, have similar goals, and operate similarly. Although these two techniques have similar features, they are two distinct techniques (Mishan, & Quah, 2020). Both ask different questions, different questions, and employ different approaches in evaluating a project’s efficiency. Therefore, the organization must understand the difference between CBA and CEA. While CEA asks how much it costs to get a certain amount of output from a given project, CBA focuses on whether the benefits of a given project outweigh its cost.
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