Economic assessment of education projects
Economic assessment of education projects

Summary/Abstract: On purpose to allocate properly limited resources it is necessary to make economic analysis of the projects, in which the state participates. Evaluation of the education projects is rather complicated, topical, however it was not studied enough in Lithuanian economic literature. In the article, there are developed essential differences of economic and financial analyses of education projects, discussed the benefit of education projects, falling on the individual and the whole society, and also the economic costs. Evaluating, whether the benefit of education projects exceeds the costs, there may be used the methods of analysis of cost-benefit, cost-efficiency, and weighted costs efficiency. On the grounds of the method of modified cost-benefit analysis, private and public investment rates to tertiary (higher) education were calculated. The social rate of return compares the benefits and costs of education from the country as a whole or society’s point of view. Social rate includes externalities that are benefit beyond those captured by the individual investor. Social rates may be used to formulate educational policies regarding the expansion, or contraction, of different levels and types of education.

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