Cost Effectiveness Analysis and Transportation: Practices, Problems, and Proposals

Cost effective analysis (CEA) is used frequently in health and other fields in which controlled experiments are possible. The problem is, however, that for many activities that are outsourced in infrastructure finance, we have no comparison groups, and when comparison groups are present, we have no data on quality, presenting any interested researcher or decision maker with some serious dilemmas. In this article we establish some basic guidelines for the collection and use of quality data, and associate these with our own errors in attempting CEA with a lack of an existing quality measure.