Benefit–cost analysis of a randomized evaluation of Communities That Care: monetizing intervention effects on the initiation of delinquency and substance use through grade 12
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Abstract
Objective
To determine whether the Communities That Care (CTC) prevention system is a cost-beneficial intervention.
Methods
Data were from a longitudinal panel of 4,407 youth participating in a randomized controlled trial including 24 towns in seven states, matched in pairs within state, and randomly assigned to condition. Significant differences favoring intervention youth in sustained abstinence from delinquency, alcohol use, and tobacco use through grade 12 were monetized and compared to economic investment in CTC.
Results
CTC was estimated to produce $4,477 in benefits per youth (discounted 2011 dollars). It costs $556 per youth to implement CTC for 5 years. The net present benefit was $3,920. The benefit–cost ratio was $8.22 per dollar invested. The internal rate of return was 21 %. Risk that investment would exceed benefits was minimal. Investment was expected to be recouped within 9 years. Sensitivity analyses in which effects were halved yielded positive cost-beneficial results.
Conclusions
CTC is a cost-beneficial, community-based approach to preventing initiation of delinquency, alcohol use, and tobacco use. CTC is estimated to generate economic benefits that exceed implementation costs when disseminated with fidelity in communities.
Keywords
Benefit–cost analysis Communities That Care Delinquency prevention Substance use prevention Youth developmentNotes
Acknowledgments
This study was supported by research grant R01 DA015183-05 from the National Institute on Drug Abuse, with co-funding from the National Institute of Child Health and Human Development, the National Cancer Institute, the National Institute of Mental Health, the Center for Substance Abuse Prevention, and the National Institute on Alcohol Abuse and Alcoholism. The content of this paper is solely the responsibility of the authors and does not necessarily represent the official views of the funding agencies. We gratefully acknowledge the support of Steve Aos, Stephanie Lee, and Elizabeth Drake at WSIPP in allowing us to conduct our analysis with the WSIPP software tool and training us in its use.
Supplementary material
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