NotesFAQContact Us
Collection
Advanced
Search Tips
ERIC Number: ED016077
Record Type: RIE
Publication Date: 1965-Nov
Pages: 20
Abstractor: N/A
Reference Count: 0
ISBN: N/A
ISSN: N/A
USING BENEFIT-COST ANALYSIS IN PLANNING AND EVALUATING VOCATIONAL EDUCATION.
DAVIE, BRUCE F.
BASIC ELEMENTS INVOLVED IN ANALYSIS BY RATIONAL RESOURCE ALLOCATION ARE APPLIED TO VOCATIONAL EDUCATION. TO IMPROVE THE EFFICIENCY OF USE OF ALLOCATED RESOURCES, THE RELATIONSHIPS BETWEEN APPLICATION OF RESOURCES TO A PARTICULAR PROGRAM AND ATTAINMENT OF OBJECTIVES CAN BE DETERMINED BY BENEFIT-COST ANALYSIS, THE RATIO OF THE PRESENT VALUE OF FUTURE BENEFITS TO THE PRESENT VALUE OF FUTURE COSTS. COSTS AND BENEFITS OF PARTICULAR VOCATIONAL PROGRAMS MUST BE ANALYZED FROM THE VIEWPOINTS OF BOTH THE INDIVIDUAL STUDENT AND SOCIETY. THE DERIVED RATIOS ARE THE SOCIETAL BENEFIT-COST RATIO OF A PROGRAM. A VARIATION OF BENEFIT-COST ANALYSIS TREATS BENEFITS AS AN UNKNOWN IN AN EQUATION INCLUDING KNOWN COSTS, NUMBER OF STUDENTS, AND AN ARBITRARILY SELECTED BENEFIT-COST RATIO. SOME LIMITATIONS OF USING BENEFIT-COST ANALYSIS FOR EVALUATING VOCATIONAL EDUCATION AND AS A BASIS FOR MAKING PUBLIC EXPENDITURE DECISIONS IN THE FIELD ARE--(1) DIFFERENT PEOPLE HAVE DIFFERENT MONEY VALUES SO THAT WHAT IS DOLLAR VALUE TO ONE MAY NOT BE TO ANOTHER, (2) THE SEARCH FOR THE BEST POSSIBLE PROGRAMS IS LIMITED TO ONLY THOSE PROPOSED, (3) IT IS DIFFICULT TO ASSESS THE VALUE OF INTANGIBLE BENEFITS WHICH CANNOT BE MEASURED IN DOLLAR TERMS, AND (4) CONSIDERING PROGRAM VALUE FROM ONLY A LOCAL VIEWPOINT MAY RESULT IN MAINTAINING OR REJECTING ONE IN CONFLICT WITH THE AGGREGATE OR NATIONAL INTEREST. DESPITE POSSIBLE LIMITATIONS, USE OF BENEFIT-COST ANALYSIS APPEARS DESIRABLE IN EVALUATING AND PLANNING VOCATIONAL EDUCATION AT THE STATE AND LOCAL LEVELS BECAUSE IT IDENTIFIES CURRENT OR PROPOSED PROGRAMS IN WHICH PROBABLE ECONOMIC BENEFITS DO NOT JUSTIFY THE ACTUAL OR PROSPECTIVE EXPENDITURES. THE APPENDIX CONTAINS A PRECISE FORMULATION OF THE BENEFIT-COST ANALYSIS METHODS. (WB)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A
Identifiers: N/A