Exercise 2: CBA Evaluation

Five years ago a community college district established programs in ten new vocational fields. The district now wants to phase out those programs that are not performing successfully and retain those programs that are performing successfully. To determine which programs to drop and which to retain, the district decides to perform CBAs.

(a) What perspective or perspectives should be used in the studies? Are there any issues concerning standing?

(b) Using a stylized cost-bene t framework table, list the major benefits and costs that are relevant to the district's decision and indicate how each affects different pertinent groups, as well as society as a whole. Try to make your list as comprehensive as possible, while avoiding double counting.

(c) What sort of evaluation design should the district use in conducting its CBAs? What are the advantages and disadvantages of this design? Is it practical?

(d) Returning to the list of benefits and costs that you developed in part b, indicate which of the benefits and costs on your list can be quantified in monetary terms. How would you treat those benefits and costs that cannot be monetized?

(e) What sort of data would be required to measure those benefits and costs that can be monetized? How might the required data be obtained?