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723 result(s) for "Marginal benefit analysis"
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Optimized strategy for schistosomiasis elimination: results from marginal benefit modeling
Background Poverty contributes to the transmission of schistosomiasis via multiple pathways, with the insufficiency of appropriate interventions being a crucial factor. The aim of this article is to provide more economical and feasible intervention measures for endemic areas with varying levels of poverty. Methods We collected and analyzed the prevalence patterns along with the cost of control measures in 11 counties over the last 20 years in China. Seven machine learning models, including XGBoost, support vector machine, generalized linear model, regression tree, random forest, gradient boosting machine and neural network, were used for developing model and calculate marginal benefits. Results The XGBoost model had the highest prediction accuracy with an R 2 of 0.7308. Results showed that risk surveillance, snail control with molluscicides and treatment were the most effective interventions in controlling schistosomiasis prevalence. The best combination of interventions was interlacing seven interventions, including risk surveillance, treatment, toilet construction, health education, snail control with molluscicides, cattle slaughter and animal chemotherapy. The marginal benefit of risk surveillance is the most effective intervention among nine interventions, which was influenced by the prevalence of schistosomiasis and cost. Conclusions In the elimination phase of the national schistosomiasis program, emphasizing risk surveillance holds significant importance in terms of cost-saving. Graphical Abstract
Multi-Objective Site Selection of Underground Smart Parking Facilities Using NSGA-III: An Ecological-Priority Perspective
In high-density urban areas where ecological protection constraints are increasingly stringent, transportation infrastructure layout must balance service efficiency and environmental preservation. From an ecological-prioritization perspective, this study proposes a three-stage multi-objective optimization strategy for siting underground smart parking facilities using the NSGA-III algorithm, with Haidian District, Beijing, as a case study. First, spatial identification and screening are conducted using GIS, integrating urban fringe-space extraction with POI, AOI, population, and transportation network data to determine candidate locations. Second, a multi-objective model is constructed to minimize green space occupation, walking distance, and construction cost while maximizing service coverage, and is solved with NSGA-III. Third, under the ecological-prioritization strategy, the solution with the lowest land occupation is selected, and marginal benefit analysis is applied to identify the optimal trade-off between ecological and economic objectives, forming a flexible decision-making framework. The findings show that several feasible schemes can achieve zero green-space occupation while maintaining high service coverage, and marginal benefit analysis identifies a cost-effective solution serving about 20,000 residents with an investment of 7 billion CNY. These results confirm that ecological protection and urban service efficiency can be reconciled through quantitative optimization, offering practical guidance for sustainable infrastructure planning. The proposed methodology integrates spatial analysis, multi-objective optimization, and post-Pareto analysis into a unified framework, addressing diverse infrastructure planning problems with conflicting objectives and ecological constraints. It offers both theoretical significance and practical applicability, supporting sustainable urban development under multiple scenarios.
A Choice-Modeling Approach to Inform Policies Aimed at Reducing Wildfire Hazard through the Promotion of Fuel Management by Forest Owners
The public-good nature of benefits of fuel management explains its current undersupply and the consequent wildfire blow. Policies to promote fuel management are thus required. To be cost-effective, they need to be informed by context-specific estimates of forest owners’ willingness-to-accept (WTA) for managing fuel. This study develops a choice-modeling approach to this problem. A survey of forest owners was undertaken in a wildfire-prone parish in Portugal. Respondents were asked about their willingness to subscribe different management contracts. A choice model was estimated and used to predict owners’ WTA for different fuel management commitments, and the marginal cost of reducing burned area in the parish. Estimated WTA amounts depend on owner type and commitment. Active owners demanded lower amounts for adopting silvicultural intervention commitments, and higher for those implying income foregone. The marginal cost of reducing burned area through fuel management increases with area, but it currently is yet smaller than the corresponding marginal benefit. Our results suggest that zero burned area is not an option and optimum fuel management lies beyond the current level. It will be shifted even beyond by targeted (key-spot) fuel management approaches; WTA differences across owners can be used to design context-specific policies that are more cost-effective.
The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs
The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on costs. We apply our methodology to estimate the gross benefit and net surplus of attending college.
Discounting in Economic Evaluations
Appropriate discounting rules in economic evaluations have received considerable attention in the literature and in national guidelines for economic evaluations. Rightfully so, as discounting can be quite influential on the outcomes of economic evaluations. The most prominent controversies regarding discounting involve the basis for and height of the discount rate, whether costs and effects should be discounted at the same rate, and whether discount rates should decline or stay constant over time. Moreover, the choice for discount rules depends on the decision context one adopts as the most relevant. In this article, we review these issues and debates, and describe and discuss the current discounting recommendations of the countries publishing their national guidelines. We finish the article by proposing a research agenda.
Estimating a cost-effectiveness threshold for health care decision-making in South Africa
Abstract Cost-effectiveness thresholds are important decision rules that determine whether health interventions represent good value for money. In low- and middle-income countries, the World Health Organization (WHO) one to three times per capita gross domestic product (GDP) per disability-adjusted life years (DALYs) averted has been the most widely used threshold for informing resource allocation decisions. However, in 2016, the WHO withdrew recommendations for using this threshold, creating a significant vacuum in South Africa and many countries that rely on results of cost-effectiveness analyses for making resource allocation decisions. This study estimates a cost-effectiveness threshold that reflects the health opportunity cost of health spending in South Africa using a three-step approach. First, marginal returns to health spending was estimated as health spending elasticity for crude death rates using a fixed effect estimation approach. Second, the opportunity cost of health spending was estimated as DALYs averted. Finally, a cost per DALY averted threshold was estimated as the inverse of the marginal product of health spending. We show that 1% of total health spending in 2015 (equivalent to approximately ZAR 1.54 billion/USD 120.7 million) averted 1050 deaths, 34 180 years of life lost, 5880 years lived with disability and 40 055 DALYs. The cost-effectiveness threshold was estimated at approximately ZAR 38 500 (USD 3015) per DALY averted, ∼53% of South Africa’s per capita GDP in 2015 (ZAR 72 700/USD 5700) and lower than the previously recommended one to three times per capita GDP. As South Africa moves towards implementing universal health coverage reforms through National Health Insurance by 2025, the adoption of a threshold that reflects health opportunity costs will be crucial for ensuring efficiency in the allocation of scarce resources. This study provides useful insight into the magnitude of the health opportunity cost of health spending in South Africa and highlights the need for further research.
The marginal cost of public funds is one at the optimal tax system
This paper develops a Mirrlees framework with skill and preference heterogeneity to analyze optimal linear and nonlinear redistributive taxes, optimal provision of public goods, and the marginal cost of public funds (MCF). It is shown that the MCF equals one at the optimal tax system, for both lump-sum and distortionary taxes, for linear and nonlinear taxes, and for both income and consumption taxes. By allowing for redistributional concerns, the marginal excess burden of distortionary taxes is shown to be equal to the marginal distributional gain at the optimal tax system. Consequently, the modified Samuelson rule should not be corrected for the marginal cost of public funds. Outside the optimum, the marginal cost of public funds for distortionary taxes can be either smaller or larger than one. The findings of this paper have potentially important implications for applied tax policy and social cost–benefit analysis.
Averting Catastrophes: The Strange Economics of Scylla and Charybdis
Faced with numerous potential catastrophes—nuclear and bioterrorism, mega-viruses, climate change, and others—which should society attempt to avert? A policy to avert one catastrophe considered in isolation might be evaluated in cost-benefit terms. But because society faces multiple catastrophes, simple cost-benefit analysis fails: even if the benefit of averting each one exceeds the cost, we should not necessarily avert them all. We explore the policy interdependence of catastrophic events, and develop a rule for determining which catastrophes should be averted and which should not.
Distributional weighting and welfare/equity tradeoffs: a new approach
There are increasing calls for concrete suggestions on how to account for distributional impacts in policy analysis. Within the context of benefit-cost analysis, per se, one possibility is to apply “distributional weights,” to inflate costs and benefits experienced by poor or disadvantaged groups. We distinguish between “utility-weights,” intended to correct for the bias in willingness to pay caused by diminishing marginal utility of income, and “equity-weights,” intended to account for the possibility that decision makers might have disproportional concern about the welfare of the poor or other disadvantaged groups. We argue that utility-weights are appropriate and necessary to maintain the legitimacy of BCA as a measure of aggregate welfare, but that equity-weights are inappropriate because they involve moral judgments that should remain in the domain of democratically accountable decision makers, and because they conflate information about both the welfare and equity impacts of policies, making it impossible for decision-makers to apply their own moral values to the assessment of tradeoffs between welfare and equity. We offer concrete suggestions regarding the application of utility-weights and the calculation of a set of metrics to provide intuitively comprehensible and useful information about, and allow decision makers to quantitatively assess the tradeoffs between, welfare and equity caused by specific policies.
New Estimates of the Elasticity of Marginal Utility for the UK
This paper provides novel empirical evidence on the value of the elasticity of marginal utility, \\[ \\], for the United Kingdom. \\[ \\] is a crucial component of the social discount rate (SDR), which determines the inter-temporal trade-offs that are acceptable to society. Using contemporaneous and historical data, new estimates are obtained using four revealed-preference techniques: the equal-sacrifice income tax approach, the Euler-equation approach, the Frisch additive-preferences approach and risk aversion in insurance markets. A meta-analysis indicates parameter homogeneity across approaches, and a central estimate of 1.5 for \\[ \\]. The confidence interval excludes unity, the value used in official guidance by the UK government. The term structure of the SDR is then estimated. The result is a short-run SDR of 4.5% declining to 4.2% in the very long-run. This is higher and flatter than the UK official guidance. The difference stems from incorrect calibration of social welfare and estimation of the diffusion of growth. Other things equal, the results suggest that current UK guidance might need to be updated.