This collection of papers provides decision-makers with tools to improve resource allocation. The two primary tools, or modes, are cost-effective analysis and cost-benefit analysis, which researchers in education have devised and refined. This volume has three main goals, all intended to help decision-makers construct a useful research program: (1) to provide an assessment of the state-of-the-art of cost-effectiveness analysis in education, reviewing the quantity and quality of existing studies; (2) to identify key issues that need to be considered in the conducting of good cost-effectiveness analyses; and (3) to present original empirical studies in cost-effectiveness and cost-benefit analysis that model some of the best practices mentioned in this book. These goals are arranged in three sections, each containing three papers, or chapters. Most chapters include figures, tables, and appendices. All chapters include references. A lengthy introduction to the book provides a basic overview of cost-effectiveness and cost-benefit analysis; describes the economic approach to cost estimation; reviews some basic concepts in the estimation of effectiveness and benefits; discusses approaches to jointly interpreting measures of costs and outcomes; and describes the particular contributions of each chapter to the three main goals of the book. (Contains an index.) (WFA)