Within the context of scarce resources, it is critical that resources for HIV/AIDS have the maximum possible impact in responding to the epidemic. A key question is what type of intervention or interventions to undertake where and when. Economic evaluation is a tool derived from the principles of welfare economics to help decision makers make the best of limited resources. It plays a part in determining how economic resources should be combined and allocated, when for some reason the market cannot or is not allowed to operate. For more than 30 years, cost-effectiveness analysis (CEA) has been used to evaluate interventions within the health sector. CEA attempts to consider both the epidemiological impact of interventions as well as the resources required to implement these interventions.
In: Forsythe S, Husain L (eds), State of the Art in AIDS and Economics International AIDS Economic Network, Washington, chp 9, pp 64-74