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Abstract
Increasing use of Benefit-Cost Analysis (BCA) in ex ante research evaluation has not
been accompanied by consensus on the increased returns flowing from the evaluation
effort. There are likely to be a wide range of views held by researchers, agricultural
economists and research managers on how evaluation can be made more effective. The
paper draws on the author’s experience in the evolution of BCA in research evaluation
to propose how the current state of the art might be advanced.
A BCA calculator is presented which enables a BC ratio to be simply and accurately
determined. Inputs are total costs and their duration, potential benefits, and the
adoption lag and rate. The adoption data, for example, is used in a table to look up the
appropriate factor for the sum of discounted benefits. The calculator is likely to be seen
as a somewhat oblique approach for those now accustomed to using the same inputs in a
spreadsheet. However, the more likely role is as an introductory tool for researchers
and research managers which is easier to understand, convenient and transparent.
Further, the calculator shows that the effort in BCA calculations is trivial compared to
that required to determine the input data. The calculator could also add to an evaluation
approach which is competitive and indeed superior to more intuitive and less
accountable approaches to resource allocation decisions. More widespread use of ex
ante BCA, coupled with ongoing monitoring, are seen as the essential priorities for
research evaluation. Monitoring can convert estimates of key inputs such as adoption
patterns from an artful art to a science.