2.3 Appraisals should provide an assessment of whether a proposal is worthwhile, and clearly communicate conclusions and recommendations. The essential technique is option appraisal, whereby government intervention is validated, objectives are set, and options are created and reviewed, by analysing their costs and benefits. Within this framework, cost-benefit analysis is recommended, as contrasted with cost-effectiveness analysis below, with supplementary techniques to be used for weighing up those costs and benefits that remain unvalued.
Analysis which quantifies in monetary terms as many of the costs and benefits of a proposal as feasible, including items for which the market does not provide a satisfactory measure of economic value. COST-EFFECTIVENESS ANALYSIS Analysis that compares the costs of alternative ways of producing the same or similar outputs. |