Policy Assessment Toolset
for equity and learning
Why perform cost analysis in school leadership policy interventions?
The omission of cost considerations risks the promotion of school leadership policy interventions that have only
minimal positive effects, but high costs that exceed those of equally effective alternatives.
Available resources for school leadership policy initiatives for equity and learning are often very limited,
can always be used in other ways to reach the same policy goal,
and saved resources can be devoted to other school system aims.
Cost analysis has become an important decision-making tool in school policies, as policy makers and school leaders are under growing pressure to present evidence showing that initiatives
funded from public resources deliver desired outcomes at reasonable costs.
Ensuring efficient and effective use of resources is an important aspect in the role of school policies.
The terms 'cost analysis', 'cost-effectiveness analysis', 'cost-benefit analysis', and 'cost-utility' analysis are often used interchangeably.
However, different methods of cost analysis can answer different policy questions.
Relationships Between Evaluation Question and Form of Cost Analysis (White et al., 2005)