Benefit-cost analysis is an important part of regulatory decision-making, yet there are questions as to how often and how well it is performed. Here we examine 28 Regulatory Impact Assessments performed by the federal government on education regulations since 2006. We find many Regulatory Impact Assessments estimated costs, albeit using informal…

Cost, cost-effectiveness, and benefit-cost analysis are methods used by economists to evaluate public policies. Essentially, these methods rely on impact evaluations, that is, research studies of efficacy and effectiveness. However, in most research in education, these cost and impact evaluations are performed separately. This separation creates…

California's school system is under tremendous long-run fiscal pressure; allocating resources efficiently is therefore paramount. Economic analysis--making sure districts and schools are spending their budgets wisely--is the method used to identify effectiveness and efficiency. This method responds to the question educational professionals face:…

Virtually all community colleges and more than 90 percent of public four-year colleges use the results of placement tests--either alone or in concert with other information--to determine whether students are ready for college-level coursework or need remedial help in math or English. Evidence suggests that placement tests do a poor job of…

Many incoming college students are referred to remedial programs in math or English based on scores they earn on standardized placement tests. Yet research shows that some students assigned to remediation based on test scores would likely succeed in a college-level course in the same subject area without first taking a remedial course if given…

Educational interventions are complex: Often they combine a diagnostic component (identifying student need) with a service component (ensuring appropriate educational resources are provided). This complexity raises challenges for program evaluation. These interventions, which we refer to as "service mediation interventions," affect…

Stackable credentials--sequential postsecondary awards that allow individuals to progress on a career path--have been suggested as a way to enhance the labor market prospects of middle-skill workers. Yet, thus far, little evidence has been provided on the economic value of these credentials. Here, we report a series of estimates on the association…

Community colleges are increasingly being pressed to demonstrate efficiency and improve productivity even as these concepts are not clearly defined and require a significant set of assumptions to determine. This paper sets out a preferred economic definition of efficiency: fiscal and social cost per degree. It then assesses the validity of using…

This paper reviews the economics of tuition tax credits (TTCs). TTCs can be described in terms of "finance" and "regulation." They allow individuals to spend money on education services and to offset at least a portion of that expenditure against their tax liability. There are few economic studies of tax credits, but they stress two questions:…

A growing body of evidence shows that quality preschooling is associated with a host of benefits to students, schools, and society at large. These benefits can have a positive impact on a state's budget, too: Children who attend preschool are not only more successful throughout their school careers, they also graduate and go on to college more…

This paper presents an updated cost-benefit analysis of the High/Scope Perry preschool Program, using data on individuals aged 40. Children were randomly assigned to a treatment or control group. Program costs are compared against treatment impacts on educational resources, earnings, criminal activity, and welfare receipt. Net present values are…

Pre-kindergarten programs enhance the lives of children and have widespread benefits for society. By improving educational performance, expanding career opportunities, and raising wage-earning potential among participating children, high-quality pre-k reduces crime, increases tax revenues, decreases dependency on public assistance programs, and…

Analysis of New York Supreme Court's interpretation of economics of education literature in its 2001 decision in "Campaign for Fiscal Equity v. The State of New York." Includes educational outcomes, educational inputs, and the efficient use of teacher inputs. Discusses the cost-effectiveness of court reform of education compared with…

Providing education for young children is an investment in their future. It can also benefit all members of society, because of the spill-over effects from having a better educated population. The critical question is: How much should a society invest in pre-schooling? The focus of this research is on only one of the benefits of pre-school: the…

This article derives an updated cost-benefit ratio for the High/Scope Perry Preschool Program, an intensive preschool intervention delivered during the 1960s to at-risk children in Ypsilanti, Michigan. Because children were randomly assigned to the program or a control group, differences in outcomes are probably attributable to program status.…