ABSTRACT
This chapter defines the category of programmes to comprise services for the elderly, the physically handicapped, the mentally ill, the mentally handicapped, deprived and 'at risk' children, and families with persistent financial, health and/or marital difficulties. It seems reasonable to advance the use of economic analysis in the area of health and social services. In several studies conducted for the City of Leicester, property taxes and civic contributions to national insurance and superannuation were deducted as transfer payments from accounting costs in estimating resource costs of local authority personal social services. In a unitary state, services are provided at the regional or, more usually, the municipal level. In a federally organized country, provincial or state governments are also involved. The chapter then distinguishes three approaches to the assessment of benefits: the traditional approach, the willingness-to-pay/compensation required approach and non-monetary evaluation.
