In 1965, Robert Kennedy initiated federal evaluation policy with ESEA. His conception of political accountability was converted into a system of cost benefit analysis, which periodically justified funding curtailments. This systems approach, similar to Taylor's Scientific Management, is inadequate as the sole evaluation tool for federal programs.…

Discusses the use of transaction-cost economics in measuring the impact of educational reforms and whether these reforms are likely to succeed in the "real life" of schools. Several current educational reforms are judged on the basis of their transaction costs and consequent prospects for success. (GR)