The Office of Education Cost Effectiveness model (OECE), developed in this project to be computer programed in a time-sharing computer language, enabled educators to compare proposals for compensatory education and to examine the long-range results of proposed and existing programs. It is based on two main hypotheses--bolstered by a number of other assumptions: that the impedance of students to learning will go down as the quality and quantity of personal services provided by the school go up; and that achievement of students can be improved, wither by reducing impedance, or by increasing the amount and quality of instruction. The model is limited in scope and is best used as an aid to decision-making. It cannot allocate funds to specific communities, select the best combination of programs, or prescribe exact expenditures. Individual school districts and researchers may now use it, as its internal and external parameters are now set, and in such a way that users of the model can set as many parameters as they require without distorting the model. This report includes recommendations concerning the use of the model, an analysis of sample model runs, and appendices relevant to the use of the model, changing the model, program organization, and flow charts. [Not available in hard copy due to marginal legibility of original document.] (GO)