COST-BENEFIT AND COST-EFFECTIVENESS ANALYSIS OF DRUG-ABUSE TREATMENT SERVICES

The foundations of cost-benefit analysis and cost-effectiveness analys is (CB/CEA) for drug abuse treatment are developed An economic model o f addict choice and drug markets is presented This model is synthesize d with the current ''cost of illness'' methods used to measure the bur den of the disease to society The problem of doing cost-effectiveness studies in the presence of large nonhealth benefits is examined, and g uidance is offered to clinical studies with a cost-effectiveness compo nent or to stand-alone cost-effectiveness studies. References and an e xtensive bibliography on drug abuse treatment-related CB/CEA studies a re appended.