In developing sound age management policies and programs the resources and economic appraisal required for the development and implementation of initiatives must also be considered. This will be useful when guiding policy decisions about options.
Economic analysis assists managers to make choices about and between various proposed programs. Therefore, a number of cost factors relating to policy and programs should be considered.
An overall cost-benefit analysis will measure the relationship between the costs of a program and its benefits.
However, other cost analyses that you may wish to conduct could include:
- Cost-minimisation analysis – compares the direct costs of proposed initiatives
- Cost-effectiveness analysis – compares the relative effectiveness of the initiatives
- Process costs – the costs of development, dissemination and implementation
- Pre-implementation costs – the costs associated with existing practice patterns, including testing, piloting
- Post-implementation costs – the costs and cost savings resulting from the policy and programs
- Direct costs – the hard costs that can be measured by expenditure
- Indirect costs – the soft costs whose value can be estimated but not measured easily by financial expenditures
For more information on the above types of economic analyses, see the Resources section.