Updated cost effectiveness analysis of the Navy drug and alcohol rehabilitation program
Erb, Katherine D. C.
Terasawa, Katsuaki L.
Gates, William R.
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A previous cost benefit analysis of the Navy drug and alcohol rehabilitation program equated the value of benefits to the avoided replacement costs of the service members successfully rehabilitated. This thesis updates this study. In particular, this thesis considers the replacement cost model and identifies an improvement to the previous methodology. The previous model misspecifies average replacement costs and overestimates the program benefits. A new rehabilitation treatment model is developed within this thesis. The value of the rehabilitation benefit is based on the Navy's desired manning objective. This more accurately reflects the rehabilitation benefit as the Navy downsizes its force structure.
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