CBA vs. CEA: The Economic Evaluation Tools Shaping Government Decisions
Update: 2025-11-15
Description
Learn the different economic evaluation methods used to ensure efficient resource allocation. We explore when to use Cost-Benefit Analysis (CBA)—which converts all benefits into dollar values—and Cost-Effectiveness Analysis (CEA)—which calculates outcomes like ‘lives saved’ per dollar spent. Discover how these quantitative methods are applied ex ante to inform funding decisions and ex post to review program effectiveness. We also touch upon key considerations, including the complexity of assumptions and ethical issues like equity and discounting future generations.
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