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Habitat restoration is a key strategy for recovering imperiled species, and planning habitat restoration activities cost effectively can help advance recovery objectives. Habitat restoration planning involves decisions about where and when to undertake restoration, and what type of restoration to undertake. This article focuses on decisions about the amount of restoration to undertake for a given type, location, and time, termed intervention intensity. A return on investment framework is developed for incorporating intervention intensity into habitat restoration planning. The framework is then applied in the context of planning habitat restoration for Pacific salmon recovery as a case study. Results showed that no single intervention type or location dominated, and several returns to scale relationships emerged across the candidate interventions. Scenarios that considered interventions across multiple intensities outperformed single-intensity scenarios in terms of total benefits and cost effectiveness. These findings highlight the usefulness of exploratory return on investment analysis for prioritizing habitat restoration interventions, and underscore the importance of systematically considering how much restoration to undertake, in addition to what to do and where. • Systematically considering the amount of restoration to undertake at a given location and time promotes effective habitat restoration planning. • A return on investment framework is developed for considering intervention intensity when planning habitat restoration. • The framework is applied to prioritizing habitat restoration for endangered Pacific salmon using coupled models of salmon habitat and salmon survival. • The case study results illustrate that considering intervention intensity can promote cost-effective habitat restoration planning. [ABSTRACT FROM AUTHOR]

Agriculture mechanization plays a significant economic role by increasing agriculture production and reducing cost of cultivation. New technologies are available to the farmers for increasing productivity and overall returns. But this technology is out of reach of small and marginal farmers, who cannot afford purchase of these machines with their meager resources. Such farmers resort to custom hiring of machines form cooperatives or from large agencies providing such facilities. But the machines which have high demand also command higher rental values. This study was planned to gather information regarding nature of services provided by these agencies, the costs analysis with respect to the annual usage and to identify the machines that gave best Return on Investment (ROI). Seven custom hiring cooperative centres located in South Western region of Punjab were selected for the study. Each of these centres had a high powered tractor. Rotavator, laser land leveller, disc harrow and cotton drill were found to be the most common machines among all the centres, implying that these machines were in most demand by the farmers. The tractors had an average annual usage of 900 hours, and that for the tillage machinery such as rotavator, cultivator, disc harrow and laser leveller was close to 550 hours. Machinery such as the hydraulic trolley and water tank were also in great demand amounting to nearly 750 and 800 hours of annual use. Machines such as the generator, blower-fan, and the tanker were mostly used for non-agricultural operations. Most of the machines being used for agricultural operations had annual usage above 200 hours. The cost analysis showed that while for all the machines the break-even annual usage was exceeded, the hydraulic trolley and the bund former were used sufficiently. It was also found that the returns were maximum for the laser leveller and for the cultivator, while machines like the rotavator, the tractor, which had high ROI, were way behind the returns generated by the laser leveller. The study also showed that all the custom hiring centres were running in profit. [ABSTRACT FROM AUTHOR]

Background: Pay-for-performance (P4P) intents to stimulate both more effective and more efficient health care delivery. To date, evidence on whether P4P itself is an efficient method has not been systematically analyzed. Objective: To identify and analyze the existing literature regarding economic evaluation of P4P. Data sources: English, German, Spanish, and Turkish language literature were searched in the following databases: Business Source Complete, the Cochrane Library, Econlit, ISI web of knowledge, Medline (via PubMed), and PsycInfo (January 2000-April 2010). Study selection: Articles published in peer-reviewed journals and describing economic evaluations of P4P initiatives. Full economic evaluations, considering costs and consequences of the P4P intervention simultaneously, were the prime focus. Additionally, comparative partial evaluations were included if costs were described and the study allows for an assessment of consequences. Both experimental and observational studies were considered. Results: In total, nine studies could be identified. Three studies could be regarded as full economic evaluations, and six studies were classified as partial economic evaluations. Based on the full economic evaluations, P4P efficiency could not be demonstrated. Partial economic evaluations showed mixed results, but several flaws limit their significance. Ranges of costs and consequences were typically narrow, and programs differed considerably in design. Methodological quality assessment showed scores between 32% and 65%. Conclusion: The results show that evidence on the efficiency of P4P is scarce and inconclusive. P4P efficiency could not be demonstrated. The small number and variability of included studies limit the strength of our conclusions. More research addressing P4P efficiency is needed. [ABSTRACT FROM AUTHOR]

Better quality data on costs and benefits of competing investment options in children's services is becoming available. In this paper, we describe the translation of one model developed for Washington State translated for use in the UK. The paper describes the approach and method used to develop the economic model, and adapt it for use in another country. Results from the United States are compared with those from the United Kingdom. The opportunity to apply these methods to improve child outcomes at reduced cost to the taxpayer is explored. The limitations and need for future development of the methods are outlined. [ABSTRACT FROM AUTHOR]

Investing in an Automated Compound Management System (ACMS) is a major investment and it is therefore imperative that return on investment is maximized. This article will demonstrate how the life cycle of an ACMS can be managed effectively to drive system efficiency, reduce costs, and meet customer demand to maximize return on investment. The article will discuss: [•] The long-term management approach taken for ACMS. [•] The challenges faced after initial implementation and beyond. [•] Major system enhancements made to the original system after implementation. [•] Evaluate the benefits from adopting an active life-cycle management approach. [•] The learning points gained through experiences. [Copyright &y& Elsevier]

This paper estimates marginal returns to college for individuals induced to enroll in college by different marginal policy changes. The recent instrumental variables literature seeks to estimate this parameter, but in general it does so only under strong assumptions that are tested and found wanting. We show how to utilize economic theory and local instrumental variables estimators to estimate the effect of marginal policy changes. Our empirical analysis shows that returns are higher for individuals with values of unobservables that make them more likely to attend college. We contrast our estimates with IV estimates of the return to schooling. JEL: I23, J24, J31 [ABSTRACT FROM AUTHOR]

The costs of construction injuries can have a substantial impact on the financial success of construction organizations and increase the overall costs of construction up to 15%. Following the Occupational Safety and Health Act of 1970, construction firms began to implement a variety of management techniques to reduce the frequency of injuries. Although these strategies decrease the cost of injuries, they consume time and other significant resources. Thus, it is imperative for construction organizations to objectively evaluate the cost-benefit of investments in injury prevention through formal and robust processes. This paper presents a risk-based framework that can be used to evaluate the incremental return on investment of a series of investments in highly effective injury prevention strategies. The framework was developed using foundational risk quantification and analysis techniques and is illustrated using a hypothetical case study that is based on archival data published by United States government agencies. The conclusion of this study is that the optimal investment strategy can be identified through a formal analysis and that optimization depends on the frequency and cost of injuries, the sequence in which the specific injury prevention techniques are implemented, the risk mitigated by each strategy, and the organization's attitude toward acceptable risk. [ABSTRACT FROM AUTHOR]

This study provides theory and evidence to demonstrate how relative firm profitability within an industry affects stock return sensitivity to industry-level news. Extending the Cournot and Bertrand competition models, we predict that (1) the returns of less profitable firms in an industry are more sensitive to industry-level news than those of more profitable firms, and that (2) this inverse relation between relative profitability and return sensitivity is more pronounced when there is positive rather than negative industry news, especially in industries with high (versus low) capital intensity. Using industry returns to proxy for industry-level news, we obtain empirical results consistent with these predictions. We further find that the two fundamental factors that contribute to profitability—cost efficiency and market share-each exhibit an effect similar to that of relative profitability in affecting return sensitivity. Our results remain unchanged after controlling for stock price movements attributable to common risk factors and firm-specific accounting information, and they hold over a range of robustness tests. [ABSTRACT FROM AUTHOR]

In general, conservation seeks to prevent further habitat loss but in many cases there is a need to reverse habitat degradation. Restoration of habitat is necessary to achieve biodiversity conservation goals but often it is a costly and time-intensive process. Prioritization of where and when habitat is restored can help to ensure the cost-effective delivery of desired outcomes. We develop a restoration prioritization decision support tool to identify the combination of restoration sites and the schedule for their implementation most likely to deliver the greatest utility for a fixed budget and operational constraints. We use a case study to apply our prioritization approach in order to illustrate the data that can be employed to parameterise the analysis and the outputs that are able to inform restoration planning. We compare restoration schedules under alternative utility functions to demonstrate trade-offs associated with different objectives, assumptions and preferences for particular outcomes. Our prioritization approach is spatially and temporally explicit and accounts for the costs and benefits of restoration, the likelihood of restoration success, the probability of stochastic events, feedbacks, time lags and spatial connectivity. Through collaboration with restoration practitioners we derive quantitative and spatially explicit data on each site requiring restoration. We determine the relative priority for restoring each site and develop a restoration schedule over 20 years. Our results showed that after 20 years a little over a half of the sites requiring restoration are likely be successfully restored, while the total expenditure at our site will be c. US$13·7 million - almost the entire budget of $14 million. Synthesis and applications. Our restoration prioritization approach provides a schedule for where and when restoration should occur, and also provides operational guidance and support for cost-effective restoration planning such as informing the likely total cost of restoration. [ABSTRACT FROM AUTHOR]

This paper describes the cost-benefits and the return on investment of one consortium comprised of five separately administered libraries in the University of Colorado (CU) System. With a long history of collaboration, the libraries have developed an ideal cooperative arrangement for acquiring electronic content that is accessible across all campuses. The size and flexibility of this institution-based consortium allows it to be responsive and successful in collaborating across four campuses despite different sized budgets and unique local and institutional constraints. To demonstrate the value of jointly leveraging library budgets to university administrators, the authors conducted a consortium level cost-benefit analysis and describe the methodology used to quantify return on the university's investment. This paper addresses both qualitative and quantitative outcomes and underscores how consortial participation has become an essential way of doing business. [ABSTRACT FROM AUTHOR]

Economists emphasize the link between market returns to education and investments in schooling. Though many studies estimate these returns with earnings data, it is the perceived returns that affect schooling decisions, and these perceptions may be inaccurate. Using survey data for eighth-grade boys in the Dominican Republic, we find that the perceived returns to secondary school are extremely low, despite high measured returns. Students at randomly selected schools given information on the higher measured returns completed on average 0.20-0.35 more years of school over the next four years than those who were not. [ABSTRACT FROM AUTHOR]

The article examines the stock price reaction of foreign private issuers (FPIs) cross-listed in the U.S. to the key events that lead to the passage of Section 407 of the U.S. Sarbanes-Oxley Act (SOX). Topics discussed include FPIs experience negative return in the U.S. market than they do in their respective domestic countries, need of examining whether investors in different markets consider the cost-benefit analysis differently and comparison of between the stock returns of the FPIs in U.S.

This paper investigates the economic efficiency of extending an existing cable waste recycling plant to accommodate the recycling of the plastic fraction of cable waste. The paper shows that when a cost benefit analysis (CBA) is carried out, the decision-making criteria generate conflicting results. More specifically, the net present value (NPV) is greater than zero, the internal rate of return (IRR) is less than the social discount rate, and the benefit cost ratio (BCR) is less than unity. Based on these results, one is unable to provide unqualified support for the project. [ABSTRACT FROM AUTHOR]

Abstract  Since many parts of the architecture evaluation steps of the Cost Benefit Analysis Method (CBAM) depend on the stakeholders’ empirical knowledge and intuition, it is very important that such an architecture evaluation method be able to faithfully reflect the knowledge of the experts in determining Architectural Strategy (AS). However, because CBAM requires the stakeholders to make a consensus or vote for collecting data for decision making, it is difficult to accurately reflect the stakeholders’ knowledge in the process. In order to overcome this limitation of CBAM, we propose the two new CBAM-based methods for software architecture evaluation, which respectively adopt the Analytic Hierarchy Process (AHP) and the Analytic Network Process (ANP). Since AHP and ANP use pair-wise comparison they are suitable for a cost and benefit analysis technique since its purpose is not to calculate correct values of benefit and cost but to decide AS with highest return on investment. For that, we first define a generic process of CBAM and develop variations from the generic process by applying AHP and ANP to obtain what we call the CBAM+AHP and CBAM+ANP methods. These new methods not only reflect the knowledge of experts more accurately but also reduce misjudgments. A case study comparison of CBAM and the two new methods is conducted using an industry software project. Because the cost benefit analysis process that we present is generic, new cost benefit analysis techniques with capabilities and characteristics different from the three methods we examine here can be derived by adopting various different constituent techniques. [ABSTRACT FROM AUTHOR]

When choosing from a menu of treatment alternatives, the optimal treatment depends on the objective function and the assumptions of the model. The classical decision rule of cost-effectiveness analysis may be formulated via two different objective functions: (i) maximising health outcomes subject to the budget constraint or (ii) maximising the net benefit of the intervention with the budget being determined ex post. We suggest a more general objective function of (iii) maximising return on investment from available resources with consideration of health and non-health investments. The return on investment approach allows to adjust the analysis for the benefits forgone by alternative non-health investments from a societal or subsocietal perspective. We show that in the presence of positive returns on non-health investments the decision-maker’s willingness to pay per unit of effect for a treatment program needs to be higher than its incremental cost-effectiveness ratio to be considered cost-effective. [ABSTRACT FROM AUTHOR]

This paper investigates a relatively new engineering service that is being introduced in Ontario: subsurface utility engineering (SUE). This service combines civil engineering, surveying, geophysics, and nondestructive excavation for the accurate mapping of underground utilities. This paper presents the results of a one-year study that investigated the use of SUE on large infrastructure projects in Ontario. The study involved performing a detailed cost analysis of nine successful SUE projects, four of which are presented in this paper. Potential cost savings were estimated for each case study and all indicated that SUE has a positive return on investment. In addition, two industry-wide surveys were conducted to investigate the effects of inaccurate utility information on projects. Results indicate that inaccurate utility information has a significant impact on project cost, schedule, and damage to existing utilities. Using the results of the case study analysis and the survey, a generic cost model for SUE was developed that relates project specific characteristics to costs that could be incurred because of inaccurate utility information. This investigation provides valuable insight to the application of a relatively new process in Canada following successful results in the United States. [ABSTRACT FROM AUTHOR]

Abstract: Child care and education are to some extent joint products of preschool programs, but public policy and research frequently approach these two goals independently. We present a benefit–cost analysis of a preschool program that provided intensive education during full-day child care. Data were obtained from a randomized trial with longitudinal follow-up through age 21. Study participants were 104 economically disadvantaged children and their families. Economic benefits include increased maternal earnings, decreased K-12 schooling costs, increased lifetime earnings and decreased costs related to smoking. Net present value is positive over a range of reasonable discount rates. Program benefits are compared to estimates from other studies with particular attention to a benefit–cost analysis of a half-day preschool program that did not provide child care. Returns to early childhood policy could be improved by greater attention to how programs might maximize education and child care benefits together regardless of the primary aim of the policy''s agency sponsor. [Copyright &y& Elsevier]

The cost of reticles is growing twice as fast as the overall cost of new process development for technologies beyond the 100-nm node [1], [2]. In order for the integrated circuit design to continuously benefit from the shrinkpath in alignment with Moore's law [3], the industry should explore cost-effective approaches for the mask data [(intellectual property (IP)] placement alternative to the standard methodology of one mask for one layer of one product [4]. The implementation of multi-IP placements, using multilayer or multiproduct (shuttle) masks, is based on complex technical and economical analysis to maximize mask return on investment (ROI) over the product lifetime. The key criteria include the ability to match layers or products on one plate with respect to the CD control and pattern density and the expected time or fab volume prior to the conversion to the dedicated mask set for successful products. This work analyzes the links between the IP content of the mask, the product market price, and the wafer volume. As an example, by taking into account the cost of the exposure and of the mask, one can show that for 100-nm technology, positive ROI would be achieved for a product or test vehicle with volume depending on the architecture of the multi- layer mask set. We compare the key challenges of the two basic multi-IP mask approaches, the multilayer and the multiproduct masks, and discuss the best conditions for their implementation. Directions for future research are also proposed. [ABSTRACT FROM AUTHOR]

Unlabelled: The net benefit (i.e., benefits minus costs) of sustained-release (SR) bupropion for smoking cessation from an employer's perspective has previously been evaluated in clinical trials including frequent, in-person behavioral counseling and manufacturer recommended dosing but not in actual practice settings and lower dosing.Objectives: The objective of this research was to determine the return on investment (ROI) and internal rate of return (IRR) from an employer's perspective of two dosing schedules of bupropion SR in combination with behavioral interventions of minimal intensity (tailored mailings, TM) or moderate intensity (proactive telephone calls, PTC) in an actual practice setting.Methods: An open-label, randomized trial with 1-year follow-up was conducted in a large health system (Group Health Cooperative) based in Seattle, WA. Participants included 1524 adult smokers interested in quitting smoking. Participants were randomly assigned to receive 150 mg of bupropion SR daily and PTC (n=382), 150 mg of bupropion SR daily and TM (n=381), 300 mg of bupropion SR daily and PTC (n=383) or 300 mg of bupropion SR daily and TM (n=378). Sufficient medications for 8 weeks of dosing were provided to patients. The primary outcome measure of the field trial was self-reported point-prevalence 7-day nonsmoking status at 12 months, and the primary outcome measures of the economic analysis were employer net benefit, employer ROI, and the ROI-associated IRR using 2002 dollars.Results: Using net benefit, the 300-mg/PTC and the 150-mg/PTC treatments were approximately equally preferred. Using ROI or IRR, both the 150-mg/TM and 150-mg/PTC treatments were about equally preferred, with IRR values of 31.7% and 31.4%, respectively. Under a pessimistic scenario regarding effectiveness and costs, 150 mg/PTC became more cost-effective than 150 mg/TM, and employer IRR for 150 mg/PTC was 13%. Under an optimistic scenario IRR exceeded 45% for all treatments.Conclusions: These results suggest that employers can receive competitive returns on investment from sponsoring smoking cessation programs, that 150 mg of bupropion doses yield better returns than 300-mg doses, and that PTC treatments should be preferred to TM if smoking cessation rates in the targeted employee population are lower than those in the study population. [ABSTRACT FROM AUTHOR]

Explores alternative approaches to an economic analysis of logistics investment opportunities. Definition of economic analysis; Time-value-of-money principle; Dimensions to an economic analysis using present value; Payback; Naive rate of return; Average return on investment; Internal rate of return; Net present value; Benefit and cost ratio.

Clinical trials can be considered health interventions as their primary aim is to impact on the health of a population. Given that resources are scarce for both health care and health related research, trials could be designed such that they can be demonstrated to be cost-effective, i.e., the costs of conducting the trial are justified given the forecasted long-term benefits.We demonstrate how a model can be used to predict the cost-effectiveness of undertaking a clinical trial comparing alternative regimens of colorectal cancer follow-up.The model forecasts costs and survival under two scenarios,with and without conducting a clinical trial, with the outcome assessed in terms of years to payback for the clinical trial.The methodology shown can be used both to provide information on appropriate trial design and/or in prioritizing between potential trials. [ABSTRACT FROM AUTHOR]

How should society deal with risks when there is scientific uncertainty about the size of these risks? There has been much recent discussion of the Precautionary Principle, which states that lack of full scientific knowledge should not be used as a reason to postpone cost-effective preventive measures. We show in this paper that the Precautionary Principle contradicts one important intuition about the right way to act in the face of risk, namely the principle of ‘looking before you leap’. When we expect to learn more about the future, the effectiveness of our preventive measures will be greater if we learn before we act. However, a number of other ways of taking uncertainty into account are consistent with a reasonable interpretation of the Precautionary Principle. First, postponing preventive measures may increase our vulnerability to damage, which induces a precautionary motive for risk-prevention, similar to the precautionary savings motive. Secondly, stronger preventive actions often yield more flexibility for the future, so that acting early has an option value. Thirdly, when better information comes from a process of learning-by-doing, the risk associated with early events is amplified by the information they yield about the future. This plays a role analogous to that of an increase in risk aversion, making us more cautious. Fourthly, because imperfect knowledge of the risk makes it difficult to insure, the social cost of risk should include a risk premium. Finally, uncertainty about the economic environment enjoyed by future generations should be taken into account. This raises the benefit of acting early to prevent long-term risks. If the Precautionary Principle sometimes gives good and sometimes gives bad advice, there is no escape from the need to undertake a careful cost-benefit analysis. We show that standard cost-benefit analysis can be refined to take account of scientific uncertainty, in ways that balance the Precautionary Prin... [ABSTRACT FROM AUTHOR]

To properly align incentives using equity-linked compensation, the firm's managers must be exposed to firm-specific risks, but this concentrated exposure prevents optimal portfolio diversification. Because undiversified managers are exposed to the firm's total risk, but rewarded (through expected returns)for only the systematic portion of that risk, managers will value stock or option-based compensation at less than its market value. This paper derives a method to measure this deadweight cost, which empirically can be quite large: managers at the average NYSE firm who have their entire wealth invested in the firm value their options at 70% of their market value, while undiversified managers at rapidly growing, entrepreneurially-based firms, such as Internet-based firms, value their option-based compensation at only 53% of its cost to the firm. These estimates prompt questions of whether compensation plans in such firms are weighted too heavily towards incentive-alignment to be cost effective. [ABSTRACT FROM AUTHOR]

This article advocates a new approach to assessing the desirability of downsizing. The model treats downsizing programs the same as any other projected investment by a firm. The steps involved in reaching a decision include: (a) Estimation of cash outflows at the initial stage of the process regarded in this paper as the investment in the downsizing project; (b) Assessment of the net inflow from downsizing; (c) Estimation, on the basis of (a) and (b), the real, post-tax rate of return on the downsizing plan and comparison with the real, post-tax cost of capital to the firm; (d) Ranking and comparing the downsizing project to all other potential investments. The final decision of whether to accept or reject a downsizing plan will then depend on the relative desirability of the project (when all other non-quantitative considerations are also evaluated) to other investment alternatives, taking into consideration the limited resources of the firm for capital spending. [ABSTRACT FROM AUTHOR]

The article examines the importance of second-order conditions in the cost-minimization problem confronting the monopsonistic employer of factor inputs. As stated in the article, returns to scale and economies of scale for the cost-minimizing firm will only be balanced through the good condition of production function and consistency of input prices. The author explores the influence of monopsonistic power in factor markets on the equivalence of returns of scale and economies of scale for the cost-minimizing firm. It emphasizes the ability of nonconvexity in the firm's objective function due to the presence of pecuniary economies in the employment of one or more factor inputs to induce several problems despite the smooth flow of production function and positive marginal products.

Using economic rates of return from World Bank-funded investments, we investigate how country characteristics and policies that influence aggregate performance affect investment productivity. Controlling for other characteristics, countries with undistorted (distorted) macroeconomic, exchange rate, trade, and pricing policies have highly productive (unproductive) investments. No type of project—in tradable or nontradable sectors—can be ''insulated'' from poor policies, where returns on investments are about ten percentage points lower. Productivity increases when policies improve within a country. Projects are also affected, nonlinearly, by the size of the public investment program where policies are undistorted. The results offer new evidence on benefits from policy reform and challenge conventional cost-benefit analysis. [ABSTRACT FROM AUTHOR]

Most organizations spend more of their revenues for Human Resources than any other resource, yet very little economic information is available to help corporate leaders optimally manage these resources. Traditional financial reporting systems make no mention of Human Resource costs, investments, and returns in their basic reports, balance sheets, profit and loss statements, and cash fiow statements. Most methods for analyzing the key elements of organization and business success have inadequately considered the economic return from Human Resource investments. Managers at all levels, line and staff, can achieve (potentially) significantly greater results from Human Resources if they concentrate their efforts on the results Human Resources are supposed to achieve and contribute to organization success rather than on the activities that are performed. To do this, improved information and financial measuring tools are needed. The material presented here is based on the premise that the purpose of Human Resource management is to assist an organ&ation to achieve the best possible ("optimum') return on its investments in Human Resources. This premise provides a future oriented, positive, and results orinted focus for all Human Resource actions of the organization. Return on investment analysis can structure and provide the economic information needed to guide the management of Human Resources by helping management quantify what is being accomplished, rather than the traditional measurement of human resource management activities. The use of economic analysis directs management to make Human Resource decisions that focus more on economic yield from maximizing gains rather than tracking activities which usually are directed at minimizing losses. [ABSTRACT FROM AUTHOR]

An iterative educational planning scheme is proposed in which labor skill requirements are first assessed through the manpower requirements approach and then evaluated according to the rate of return approach. In this way the technical requirements in production (manpower approach) are subject to an economic optimality test (rate of return approach). The cost-benefit evaluation of present or planned labor skill structures can take place in a static linear programming framework or by using a neo-classical production function which incorporates substitution possibilities between labor skills. [ABSTRACT FROM AUTHOR]

Traditional procedures alone are not appropriate for justifying advanced manufacturing systems. It is necessary to consider the benefits of new technology in manufacturing systems since financial return is dependent on many factors outside manufacturing. An in-depth examination is the foundation of the comprehensive comparative analysis presented here. The mechanism used to combine and synthesise tangible and intangible benefits of advanced technology is the analytic hierarchy process. A cost/benefit analysis incorporates cashflows and benefits to determine the best manufacturing system choice. A detailed example is given to illustrate the procedure, and to compare the results with that of the traditional return on investment method. [ABSTRACT FROM AUTHOR]

Background: The value of malaria eradication, the permanent reduction to zero of the worldwide incidence of malaria infection caused by human malaria parasites, would be enormous. However, the expected value of an investment in an intended, but uncertain, outcome hinges on the probability of, and time until, its fulfilment. Though the long-term benefits of global malaria eradication promise to be large, the upfront costs and uncertainty regarding feasibility and timeframe make it difficult for policymakers and researchers to forecast the return on investment. Methods: A large online survey of 844 peer-reviewed malaria researchers of different scientific backgrounds administered in order to estimate the probability and time frame of eradication. Adjustments were made for potential selection bias, and thematic analysis of free text comments was carried out. Results: The average perceived likelihood of global eradication among malaria researchers approximates the number of years into the future: approximately 10% of researchers believe that eradication will occur in the next 10 years, 30% believe it will occur in the next 30 years, and half believe eradication will require 50 years or more. Researchers who gave free form comments highlighted systemic challenges and the need for innovation as chief among obstacles to achieving global malaria eradication. Conclusions: The findings highlight the difficulty and complexity of malaria eradication, and can be used in prospective cost–benefit analyses to inform stakeholders regarding the likely return on eradication-specific investments. [ABSTRACT FROM AUTHOR]

Background: This paper addresses the question of what a reasonable price for an orphan drug is. The research proposes a way to adjust an established payer/HTA body incremental cost-effectiveness threshold (CET) to take account of differences in patient populations and costs of research and development in order to sustain prices that generate rates of return from investments in developing orphan drugs that are no greater than the industry average. Methods: We investigated the cost of conducting research for orphan drugs as compared to non-orphan drugs, as well as patient population sizes targeted by orphans and non-orphans. We provided an empirical illustration based on novel drug approvals of orphan and non-orphan drugs of the FDA between 2011 and 2015 (N = 182). Results: Using, for illustration, the NICE incremental CET (£20 K per QALY) as an anchor and adjusting by R&D costs and expected market revenue, we estimated the adjusted reasonable CET for orphan drugs to be £39.1 K per QALY at the orphan population cut-off and £78.3 K per QALY at the orphan population mid-point. For ultra-orphan drugs the adjusted CET was £937.1 K. Conclusions: We propose one general method for establishing a reasonable price for an orphan drug, based on the proposition that rates of return for investments in developing orphan drugs should not be greater than the industry average. More research is required on data and assumptions, but with the data and assumptions we use, we find that in order to secure such a reasonable price for an orphan drug, the CET for orphans would need to be higher. This could be one approach for establishing the maximum allowable price society should be willing to pay, although decision-makers may still wish to negotiate a lower price, or refuse to pay such a premium over the value-based price in order to treat these groups of patients. [ABSTRACT FROM AUTHOR]

One fundamental dimension in the design of an electrical energy system (EES) is the economic analysis of the possible design alternatives, in order to ensure not just the maximization of the energy output but also the return on the investment and the possible profits. Since the energy output and the economic figures of merit are intertwined, for an accurate analysis it is necessary to analyze these two aspects of the problem concurrently, in order to define effective energy management policies. This paper achieves that objective by tracking and measuring the energy efficiency and the cost effectiveness in a single modular framework. The two aspects are modeled separately, through the definition of dedicated simulation layers governed by dedicated virtual buses that elaborate and manage the information and energy flows. Both layers are simulated concurrently within the same simulation infrastructure based on SystemC-AMS, so as to recreate at runtime the mutual influence of the two aspects, while allowing the use of different discrete time scales for the two layers. Thanks to the tight coupling provided by the single simulation engine, our method enables a quick estimation of various cost metrics (net costs, annualized costs, and profits) of any configuration of EES under design, via an informed exploration of the alternatives. To prove the effectiveness of this approach, we apply the proposed strategy to two EES case studies, we explored various management strategies and the presence of different types and numbers of power sources and energy storage devices in the EES. The analysis proved to allow the identification of the optimal profitable solutions, thereby improving the standard design and simulation flow of EES. [ABSTRACT FROM AUTHOR]