Showing papers on "Cost effectiveness published in 1969"
Posted Content•
TL;DR: In this paper, a simple model of a hospital is developed, and its implications are considered, and an attempt is made to justify the realism of the model, although it cannot be entirely realistic.
Abstract: : A simple model of a hospital is developed, and its implications are considered. An attempt is made to justify the realism of the model, although it cannot be entirely realistic. To develop the model the assumption is made that hospital expenses are financed by the patient and not by a third party. Thus the model may prove applicable to other non-profit institutions where third party payments are not important, such as colleges and universities, the performing arts, and museums.
813 citations
TL;DR: The authors explored the general nature of income redistribution effects of the financing of public higher education in California and found that the distribution of subsidies actually favors upper-income families, since eligibility for the higher-subsidy institutions is positively related to family income level and since actual attendance among those eligible increases as family income rises.
Abstract: This paper explores the general nature of income redistribution effects of the financing of public higher education in California. The amount of available subsidy (full cost less student charges) varies dramatically among the three higher education systems-University, State College, and Junior College. Since eligibility for the higher-subsidy institutions is positively related to family income level, and since actual attendance among those eligible increases as family income rises, the result is that the distribution of subsidies actually favors upper income families. These subsidies are then compared with total state and local taxes paid. The results show that families with children enrolled in public higher education receive positive net transfers (subsidy less taxes paid) and that these net transfers are an increasing fraction of average family money income.
177 citations
Posted Content•
TL;DR: In this article, the authors explored the possibility of relieving the congestion and optimizing the use of airport runways by imposing marginal cost pricing or congestion tolls, which is preferable on efficiency grounds to the present weight-based service pricing used at most airports.
Abstract: : The report explores the possibility of relieving the congestion and optimizing the use of airport runways by imposing marginal cost pricing or congestion tolls. Other short-term solutions are only briefly considered. New York's LaGuardia Airport is used as the primary example. It is concluded that proportional marginal cost pricing is preferable on efficiency grounds to the present weight-based service pricing used at most airports. Carrier load factors would have to be increased to more efficient levels by administrative measures.
170 citations
Posted Content•
46 citations
TL;DR: This study is the first known attempt to evaluate two such systems for what may well be the predominant user population within the next decade—the professionals who, as nonprogrammers, are using the computer as an aid in decision-making and problem-solving rather than as a programming end in itself.
Abstract: An experimental comparison of problem-solving using time-sharing and batch-processing computer systems conducted at MIT is described in this paper This study is the first known attempt to evaluate two such systems for what may well be the predominant user population within the next decade—the professionals who, as nonprogrammers, are using the computer as an aid in decision-making and problem-solving rather than as a programming end in itselfStatistically and logically significant results indicate equal cost for usage of the two computer systems; however, a much higher level of performance is attained by time-sharing users There are indications that significantly lower costs would have resulted if the time-sharing users had stopped work when they reached a performance level equal to that of the batch users The users' speed of problem-solving and their attitudes made time-sharing the more favorable system
34 citations
TL;DR: It is led to the surprising conclusion that from the standpoint of economic efficiency, it may be as desirable to rehabilitate the less productive disabled as the more productive.
Abstract: More than 170,000 disabled persons were rehabilitated through the state-federal vocational rehabilitation program in fiscal 1967. A conservative estimate of their increased lifetime earnings is about $4.7 billion, about $8 for each dollar of the social cost of rehabilitation services. If we discount these future increased earnings at 4 percent, the latter figure falls to a little less than $5. Taxpayers share substantially in these earnings, as the increased taxes paid by the rehabilitants and the reduction in tax-supported payments for their maintenance amount to perhaps as much as 25 percent of the total increase in earnings. Since rehabilitants with the highest earnings at closure also tend to be those with the highest earnings at acceptance and are the most expensive to rehabilitate, we are led to the surprising conclusion that from the standpoint of economic efficiency, it may be as desirable to rehabilitate the less productive disabled as the more productive.
31 citations
15 Sep 1969
TL;DR: After detailed analysis of the model and blending with the cost structure it is shown that the criterion for self-optimization of the customer will not bring about social optimization, the latter being defined as the maximally feasible expected net gain per unit time accruing to the totality of customers.
Abstract: : A queueing model is considered where customers arriving in a Poisson stream are given the choice of either joining the waiting line or - by declining to do so - of foregoing the benefits accruing through service The decision of each customer is based on his concrete benefit-cost analysis Since his service time is constant and exhaustive information as to the actual state of the system is available, both of the alternatives presented to the individual customer are completely deterministic and his decision is not reached under uncertainty or risk After detailed analysis of the model and blending with the cost structure it is shown that the criterion for self-optimization of the customer will not bring about social optimization, the latter being defined as the maximally feasible expected net gain per unit time accruing to the totality of customers A number of simple and comprehensive optimization equations are derived By marginal analysis the correctness of the simple equations is verified and their applicability is extended to models possessing more general character
23 citations
TL;DR: In this article, the authors outline the trend in the last few years toward automatic Braille production and describe the development of a low-cost Braille translation and embossing system at the Research Laboratory of Electronics at MIT.
Abstract: The manufacture of Braille textbooks has, in the past, been accomplished in two ways. The first is the large-scale production, utilizing zinc plate embossing presses. The second is hand production, done by a large number of dedicated volunteers. This paper outlines the trend in the last few years toward automatic Braille production and describes the development of a low-cost Braille translation and embossing system at the Research Laboratory of Electronics, Massachusetts Institute of Technology. Criteria are given for the generation of input to an automatic system along with techniques for increasing the cost effectiveness of Braille manufacture.
01 Apr 1969
TL;DR: In inspection models deal with operating systems whose stochastic failure is detected by observations carried out intermittently, in particular: a truncated inspection model, in which costs for both unscheduled and scheduled replacements are introduced and mixed models in which monitoring is considered in addition to checking.
Abstract: : Inspection models deal with operating systems whose stochastic failure is detected by observations carried out intermittently. Previous authors calculated an optimal policy for a system possessing a given life time distribution. In these models two types of cost are introduced: one pertains to the expense incurred for each check; the other is associated with the time which elapses between system failure and its discovery at the subsequent check. The optimal policy is a sequence of checking times minimizing the loss per life cycle or, alternatively, per time unit. The technique of differentiation is used in order to arrive at the minimal loss solution. The present study deals with some additional models; in particular: (a) a truncated inspection model, in which costs for both unscheduled and scheduled replacements are introduced. The optimal policy is then given by a finite time sequence. (b) mixed models in which monitoring is considered in addition to checking. It is demonstrated by numerical results that the use of these policies will generally result in smaller losses than those associated with previous models. (Author)
TL;DR: A method for use in allocating resources to a multi-laboratory, multitask research and exploratory program is described, and structural models are developed for interrelating tasks, S and T fields, and objectives.
Abstract: A method for use in allocating resources to a multi-laboratory, multitask research and exploratory program is described. The basic elements of the underlying model are 1) tasks, projects, and laboratories, 2) contributing sciences and technologies (S and T), 3) criticality of such fields to achieving organizational objectives, 4) relative values of objectives, and 5) costs of performing tasks. Structural models are developed for interrelating tasks, S and T fields, and objectives. A cost-effectiveness model is developed for use in allocating resources to tasks. Research and exploratory development effectiveness is measured in terms of the value of task contribution to organizational objectives. Results of this study tested by experimentally determined inputs include 1) cost-effectiveness relationships for tasks, projects, laboratories, and S and T fields, 2) log-normal distributions for both project cost and effectiveness, and 3) a systematic procedure for allocating resources to R&D activities.
Book•
01 Jan 1969
TL;DR: The learning-curve concept has been used extensively in cost analysis as discussed by the authors. But it is not suitable for long-range planning or contract negotiation, as it requires a detailed knowledge of the learning curve phenomenon.
Abstract: : There are three basic methods used for cost estimation--the industrial engineering, analogy, and statistical approaches. The statistical method is considered the most useful for government cost analysts, whether the purpose is long-range planning or contract negotiation. An estimating procedure must rely on a data base that includes cost, physical and performance descriptions, and a development and production history of previous equipment programs. Experience has proved the value of the learning-curve concept. Its basis is that each time the total quantity of items produced doubles, the cost per item is reduced to a constant percentage of its previous cost. A thorough knowledge of the learning-curve phenomenon is indispensable to persons involved in cost analysis. (Author)
01 Sep 1969
TL;DR: In this paper, the authors propose a method to solve the problem of gender discrimination in the workplace, and propose an approach based on self-defense and self-representation, respectively.
Abstract: DOCUMENT RESUME
01 Jan 1969
TL;DR: The Planning Programming Budgeting System (PPBS) as discussed by the authors is an integrated management system that places emphasis on the use of analysis for program decision making and provides management with a better analytical basis for making program decisions, and for putting such decisions into operation through an integration of the planning, programming and budgeting functions.
Abstract: : The Planning Programming Budgeting System (PPBS) is an integrated management system that places emphasis on the use of analysis for program decision making. The purpose of PPBS is to provide management with a better analytical basis for making program decisions, and for putting such decisions into operation through an integration of the planning, programming and budgeting functions.
01 Dec 1969
TL;DR: In this article, a cost effectiveness analysis was performed for equipment, materials, and techniques for the removal of spilled petroleum products from the surface of port and harbor waters used by U. S. Naval craft.
Abstract: A cost effectiveness analysis was performed for equipment, materials, and techniques for the removal of spilled petroleum products from the surface of port and harbor waters used by U. S. Naval craft. Effectiveness criteria, formulated for present methods and presently available equipment and materials, included speed of application, completeness of removal, ease of operation, effect on marine life, operating continuity, and availability. Parameters for the effectiveness study were based on the petroleum products now in use or those planned for future use and a detailed review of the geographic, hydrographic, physical, and environmental characteristics of ports used by the U. S. Navy. The two most cost-effective systems for broad application were found to be mechanical recovery of spilled material by surface suction devices, supplemented by mechanical containment, and the application of chemical dispersants by pier-or vessel-mounted high pressure spray equipment.
TL;DR: Using the parameters of developing countries, a model of the effects of varying degrees of birth control is analysed and it is shown that countries that have full birth control participation including half of all fertile couples, at 2.00 dollars per couple, would cost the government less than 3% of all expenditures for economic development.
Abstract: Using the parameters of developing countries a model of the effects of varying degrees of birth control is analysed. With the use of no increasing and full birth control the per capita income rises from 150 dollars initially to 117 dollars 202 dollars and 216 dollars after 15 years; and to 206 dollars 255 dollars 268 dollars after 25 years. The value of preventing one birth is 288 dollars over 10 years and 705 dollars over 25 years; but the cost is only 10 dollars per birth averted. With no birth control the rate of product innovation would need to be 1.5 times the present rate and saving propensities would need to be doubled to tripled. If countries could have full birth control participation including half of all fertile couples at 2.00 dollars per couple the cost to the government would be less than 3% of all expenditures for economic development. As shown in the model the advantages of such a policy are beneficial to the economic situation in the country.
TL;DR: This essay is a report of a cost-effectiveness study of urban transportation that was conducted as a part of a large systems-analysis effort to investigate present and future modes of transportation within selected cities.
Abstract: This essay is a report of a cost-effectiveness study of urban transportation that was conducted as a part of a large systems-analysis effort to investigate present and future modes of transportation within selected cities. The paper gives a comprehensive array of socio-economic cost and effectiveness measures, and presents summary procedures for the full range of investment and operating costs, social impacts, and special factors affecting the quality of urban living.
TL;DR: In this paper, two main approaches have been developed for the purpose of evaluating the benefits of population control programs: the investment approach, which basically argues for programs aimed directly at birth prevention through the payment of bonuses to individuals for not having children.
Abstract: This paper outlines 2 main approaches which have been developed for the purpose of evaluating the benefits of population control programs. One of these is the investment approach which basically argues for programs aimed directly at birth prevention through the payment of bonuses to individuals for not having children. Such investment models are partial equilibrium analyses: They want to find out the impact of preventing a single birth assuming all other things to remain constant. The second approach is the growth model approach which assumes a constant capital output ratio in the period under analysis. This is the Harrod-Domar model. There are other growth models also and they are discussed here. The authors prefer a dynamic macroeconomic growth model which will generate the time path of the benefits and costs of alternative demographic policies. No matter which approach is followed the economic benefits are substantial. Empirical work on structural relationships is considered the next important step to be taken in applying economic analysis to population control programs.
TL;DR: The results of the study indicate that effective managerial cost accounting is possible for a technical information center.
Abstract: Technical information centers have been established in recent years to cope with the “information explosion” problem which confronts the scientific community. These operations are highly analogous to a typical manufacturing firm with functions such as purchasing, production, service, finance, administration, and distribution.
Management of a center encounters cost information requirements similar to those found in other enterprises for planning, control, and decision-making purposes. Yet, research indicates that few tangible cost-accounting applications have been attempted in information centers.
The purpose of this paper is to describe a research project conducted at a technical information center to test the hypothesis that: A theoretically-sound managerial cost-accounting system can be designed to meet the specific characteristics of a technical information center by revising and innovating systems utilized by other enterprises. A computerized cost system was developed and operated for a three-month period to test this hypothesis. The results of the study indicate that effective managerial cost accounting is possible for a technical information center. Relevant cost information was generated periodically to measure the operating performance of the center's production process. A summary of the data that were reported regularly to management is presented in this paper.
01 Mar 1969
TL;DR: This study focuses on the Monte Carlo simulation approach to uncertainty in cost analysis, and develops two models, the Beta model and the Weibull model, each of which reflects a particular distribution form for the inputs.
Abstract: : An important aspect of cost research is the measurement of the uncertainty inherent in the projection of system cost. Approaches to this problem have in the past centered on the decision maker's intuition or in sensitivity analysis. Only recently have approaches utilizing such tools as statistical decision theory and probability theory been formulated. This study focuses on the Monte Carlo simulation approach to uncertainty in cost analysis. This approach requires: (a) Expression of input estimates as probability distributions reflecting uncertainty. (b) Cost equations pertinent to a particular model. The Monte Carlo simulation approach then generates: (a) The frequency distribution for system cost. (b) Statistical measures that illustrate the nature and magnitude of system cost uncertainty. Two models are developed, the Beta model and the Weibull model, each of which reflects a particular distribution form for the inputs. The relative costs and advantages of each model are compared. A user's guide to the program and complete program listings are presented in an appendix.
01 Jan 1969
TL;DR: In this paper, the cost of establishing the statistical distribution of strength of the structural material is also introduced into the cost formulation, and numerical examples indicate a definite advantage of the proof-load approach in terms of savings in structural weight.
Abstract: Proof-load test improves statistical confidence in the estimate of reliability, numerical examples indicate a definite advantage of the proof-load approach in terms of savings in structural weight. The cost of establishing the statistical distribution of strength of the structural material is also introduced into the cost formulation
Journal Article•
TL;DR: In this article, a cost analysis for selected educational programs in the area schools of Iowa was conducted and a correlation analysis was utilized to determine the relationship that existed between student costs and the above factors.
Abstract: The problem of this study was the development of a cost analysis for selected educational programs in the area schools of Iowa. The rationale underlying the study was expressed in the basic assumption that current-unit-costs per student-contact hour were dependent upon the factors of enrollment, instructional costs, administrative costs, opera tion and maintenance of plant, fixed charges, and auxiliary services. Relationships were ascertained between the average-annual-per-student-cost for arts and science curricula and vocational technical programs. Current-student costs per contract-hour for each vocational-technical program were found and a correlation analysis was utilized to determine the relationship that existed between student costs and the above factors. The correlation analysis revealed highly significant relationships between current-student-cost per contract-hour and the related factors with the excep tion of minor equipment. The correlation between cost and enrollment was the highest at ?.72. ONE OF the most crucial problems facing this nation is how to provide adequate financial sup port for the increasing enrollments in higher edu cation. Because of the emerging nature of public junior colleges, with their trend toward compre hensive programs, the financial problem becomes more acute. With the tremendous number of dif ferent programs and curricula being offered, a variation in unit costs is created, resulting in dif ferences in cost for the various educational cur ricula. The purpose of this study was to determine the relationship between the current-unit-costs per student-contact hours for arts and science trans fer curricula and selected vocational-technical programs. A cost analysis ascertained the unit cost for each vocational-technical program and this cost was compared with the mean cost of edu cating a student in the arts and science transfer curricula to see if there was a consistent relation ship across the institutions included. In addition, an analysis of each factor that contributed to this cost was made to determine any relationship that might exist. The rationale underlying this study was ex pressed in the following basic assumption: cur rent-unit-costs per student-contact hour for par ticular curricula are dependent upon the factors of enrollment, administrative costs, operation and maintenance of plant, instructional supplies, aux iliary services, fixed charges, and other indirect expenses. This assumption generated the follow ing questions :