Worksheet 3: Cost-Benefit Analysis

Worksheet 3: Cost-Benefit Analysis#

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  1. A priori, do you think vaccines or mosquito nets are a better idea, and why?

  2. What are sources of benefit for Malaria prevention? How should we quantify benefit?

  3. What are sources of cost for a vaccination or net distribution campaign? How should we quantify cost?

  4. Mosquito Nets: benefits and costs. Set up a Fermi-style calculation for (a) the benefit and (b) the cost of distributing mosquito nets. Here are some facts that Tselil compiled/condensed to help us:

  • An unvaccinated child in sub-Saharan Africa will experience 1-3 Malaria infections per year in early childhood.

  • The infection fatality rate in the population is about 1 death per 400 clinical cases.

  • An insecticide-treated mosquito net costs $2 to manufacture

  • One net remains effective in its protection for about 3 years.

  • On average each net is shared by 2 people.

  • People sleeping under a net are half as likely to contract Malaria as those sleeping without a net.

    (a) Benefit:

    (b) Cost:

  1. Vaccines: benefits and costs. Set up a Fermi-style calculation for (a) the benefit and (b) the cost of a vaccination campaign. Here are some additional facts that Tselil compiled/simplified to help us:

  • The vaccine is most effective if the first dose is followed by a booster 1.5 years later.

    • Children who receive both doses are 15-25% less likely to die of Malaria than those not vaccinated.

    • For simplicity, assume children who only get one dose see no change in chance of death.

  • Attrition: only 35% of children who get one dose follow up with a booster.

    • That means that you have to give about 4 doses on average per full vaccination (because .65/.35 ~ 2 children will have only one dose for each fully vaccinated child)

  • A single dose of the vaccine costs $10.

  • The vaccine must be kept cold and administered by a trained professional.

    (a) Benefit

    (b) Cost

  1. What is the cost/benefit ratio of each option? Which option is better? Are you surprised?

  2. Which components of our calculation are you least confident in?