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Cost-Efficiency Index of the Development Plan of Medellín, 2015

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  • Charle Augusto Londoño Henao

    (Alcaldía de Medellín)

Abstract

This article illustrates a microsimulation exercise on the Local Development Plan 2016–2019: Medellín Cuenta con Vos using a cost-efficiency approach [A Cost-Efficiency Analysis (CEA) when focused on the study of public policy establishes how the investment in one or several interventions impacts the well-being of the population in a quantifiable value. I will conceive this analysis as the monetary resources that are required to impact a well-being indicator in a specific percentage, what allows me to make a policy comparison]. Public projects in education, health, social inclusion, security, housing, urban integral projects (UIP), environmental development and mobility are simulated, using as an objective function the Cost-Efficiency Index of the Development Plan (CEIDP). I found that by executing the whole investment plan, the index increases by 3.07% points for the 4-year period. The most cost-efficient public interventions are those attached to the UIP. I estimate that the investment of COP 1.0 billion in the UIP projects might trigger by 0.01% the CEIDP, followed by training for work projects (COP 2.5 billion) and childhood projects (COP 2.6 billion).

Suggested Citation

  • Charle Augusto Londoño Henao, 2020. "Cost-Efficiency Index of the Development Plan of Medellín, 2015," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 335-367, November.
    • Handle: RePEc:spr:soinre:v:152:y:2020:i:1:d:10.1007_s11205-020-02430-8
    DOI: 10.1007/s11205-020-02430-8
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    More about this item

    Keywords

    Microsimulation; Ex-ante impact evaluation; Public policy; Wellbeing;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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