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Benefit-Cost Analysis of a Controlled Experiment: Treating the Mentally Ill

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  • Burton A. Weisbrod

Abstract

This study is the first benefit-cost analysis of a controlled (random assignment) experiment in the mental health field. It compares, in terms of an unusually wide variety of "tangible" and "intangible" forms of benefits and costs, a traditional hospital-based approach to treating the mentally ill with a nontraditional community-based approach. The study highlights the very different forms taken by the effects of the alternative therapies. Thus it shows how distorted conclusions can result from a failure of benefit-cost analyses to measure benefits and costs comprehensively; a change in form can be mistaken for a change in level of costs or benefits.

Suggested Citation

  • Burton A. Weisbrod, 1981. "Benefit-Cost Analysis of a Controlled Experiment: Treating the Mentally Ill," Journal of Human Resources, University of Wisconsin Press, vol. 16(4), pages 523-548.
    • Handle: RePEc:uwp:jhriss:v:16:y:1981:i:4:p:523-548
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    Citations

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    Cited by:

    1. S. M. A. A. Evers & A. S. Van Wijk & A. J. H. A. Ament, 1997. "Economic Evaluation of Mental Health Care Interventions. A Review," Health Economics, John Wiley & Sons, Ltd., vol. 6(2), pages 161-177, March.
    2. Richard O. Zerbe, 1998. "Is cost-benefit analysis legal? Three rules," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(3), pages 419-456.
    3. Ejaz Gul & Imran Sharif Chaudhry, 2014. "Qualitative Assessment of Energy Initiative: Case Study from Liberia," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 360-372.
    4. Aidan R. Vining & David L. Weimer, 2013. "An assessment of important issues concerning the application of benefit–cost analysis to social policy," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 1, pages 25-62, Edward Elgar Publishing.
    5. Joseph Nicolette & Stephanie Burr & Mark Rockel, 2013. "A Practical Approach for Demonstrating Environmental Sustainability and Stewardship through a Net Ecosystem Service Analysis," Sustainability, MDPI, vol. 5(5), pages 1-26, May.
    6. John Geweke & Burton A. Weisbrod, 1984. "How Does Technological Change Affect Health Care Expenditures?," Evaluation Review, , vol. 8(1), pages 75-92, February.
    7. Debra Sabatini Dwyer & Olivia S. Mitchell & Robert Cole & Sylvia K. Reed, 1995. "Evaluating Mental Health Capitation Treatment: Lessons from Panel Data," NBER Working Papers 5297, National Bureau of Economic Research, Inc.
    8. Machnes, Yaffa, 1996. "Incentives and production of mental health services," European Journal of Political Economy, Elsevier, vol. 12(3), pages 459-466, November.

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