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ERIC Number: ED047387
Record Type: RIE
Publication Date: 1971-Feb-6
Pages: 10
Abstractor: N/A
Reference Count: 0
Educational Benefit-Cost Analysis and the Problem of Scale.
Welty, Gordon A.
Benefit-cost analysis consists of establishing ratios of benefits to costs for a set of project variants. The decision rule is to select that project variant where the ratio is a maximum. This paper argues that specification and estimation errors can contribute to findings for large-scale systems of benefit-cost ratios approximating zero. The feasibility of descriptive, structural, and experimental approaches to benefit-cost analysis is discussed. A benefit-cost model is presented for the small-scale educational project. This model is generalized to a large-scale system, and it is demonstrated that scaleup factors such as communication and control in the organization, often overlooked, provide specification errors that contribute to the finding of negligible benefit-cost ratios. (Author)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A
Note: Paper presented at American Educational Research Association Annual Meeting (55th, New York, New York, February 4-7, 1971)