An economic method for formulating better policies for positive child development

Social scientists and education, health and human service practitioners recognise the benefits of primary prevention and early intervention compared with remedial alternatives. A recent meta-analytic review of early childhood prevention programs conducted by the authors demonstrates good returns on investment well beyond the early years, into and beyond adolescence. There are two methodological deficiencies in the current prevention literature: (1) the limited tools available to assist when making choices on resource allocation and engaging in a structured decision-making process with respect to alternative policy options for early prevention; (2) the absence of a rigorous tool for measuring the economic impact of early prevention programs on salient aspects of non health-related quality of life. This paper examines traditional economic methods of evaluation used to assess early prevention programs, and outlines a new method, adapted from the Analytical Hierarchy Process, that can be used to address these deficiencies. © The University of Sydney.