Benefit-Cost Technical Documentation: Washington State Institute for Public Policy Benefit-Cost Model

by Michael Hirsch

This Benefit-Cost Technical Documentation describes the latest version of the Washington State Institute for Public Policy (WSIPP) benefit-cost model. The model is designed to produce, for the Washington State Legislature, internally consistent estimates of the benefits and costs of various public policies. WSIPP built its first benefit-cost model in 1997 to determine whether juvenile justice programs that have been shown to reduce crime can also pass an economic test. In subsequent years, as WSIPP received new research assignments from the Washington State Legislature, the benefit-cost model was revised and expanded to cover additional public policy topics. As of this writing, the legislature or the WSIPP Board of Directors has asked WSIPP to use the benefit-cost model to identify effective programs and practices in the following public policy areas:

 Criminal and juvenile justice
 K–12 and early education
 Child welfare
 Substance abuse
 Mental health
 Public health
 Public assistance
 Employment and workforce development
 Health care
 General prevention
 Higher education

The model described in this Technical Documentation reflects our current approach to computing benefits and costs for this wide array of topics. We update and revise our estimates and methods from time to time. In particular, as we use this model in the policy and budgetary process in Washington State, we frequently adapt our approach to better fit the needs of policymakers. This document reflects the current state of the model (as of the publication date on the title page).

220 pages, Unknown Binding

Published December 1, 2018

Reviews

[Rob Moore · Rating 5 out of 5]

I've never read a more riveting technical document. I say this with only the slightest amount of snark: the book really is incredibly well written, with easy formulas and base-level explanation of models. The book was clearly written by someone who is both incredibly intelligent and a very good writer, a rare combination. The manual is a great read for anyone who wants to learn about what benefit-cost analysis looks like in practice.