The Importance of Economic Criteria To Agency Administrators

Abstract

This paper argues that program evaluation research should be broadened to deal systematically with the economics of resource use at the level of the individual social service delivery agency. This contention is predicated on the assumption that agency administrators must operate within limited budgets and, thus, cannot make rational choices in developing service priorities without information on service costs. The argument is strengthened by the recognition that input use can be established by the same methods used to measure service delivery. An example is presented to illustrate the problems faced by an agency administrator who attempts to establish the optimal service mix m the face of a limited agency budget. The example is then generalized for more complex service delivery requirements.