Learning in government programs and the usefulness of cost-benefit analysis: Lessons from manpower and urban renewal history

Abstract

Especially in the social program area, the outcomes of new programs are extremely difficult to predict, and it is rarely clear a priori which of several competing program techniques ought to be tried. In such an atmosphere, ex post program evaluation methods which take account of possibilities of “learning by doing” can promote the selection over time of those program elements which maximize beneficial results per unit cost. A basic premise of this paper is that recent applications of cost-benefit techniques have frequently ignored learning considerations, greatly reducing their usefulness. The “learning by doing” features of the recent history of manpower and urban renewal programs are examined to demonstrate the plausibility of this premise.