How does this help again? Economic evaluation and homelessness policy

The use of economic analysis in the realm of homelessness service provision has been a source of concern to a number of participants. Many participants in the service system believe that it is inappropriate or even unethical to consider economic outcomes or costs and benefits. Resource allocation decisions are, however, inescapable. Reliable evidence about the costs and benefits of different interventions and programs helps make these decisions on a 'rational' basis. While there are limits to the role evaluation research can and should play in decision-making, it has a role and it seems a reasonable goal to make the information it produces as transparent and relevant as possible. This paper begins by examining attempts to calculate an aggregate cost of homelessness. We then outline common distinctions drawn between forms of economic evaluation and costing and examine the ethical and disciplinary basis of welfare economics seen to underpin 'good practice' in this area. Finally we consider how we might proceed in undertaking policy-relevant economic evaluation. We question the usefulness of aspiring to a disciplinary ideal of cost benefit analysis and argue that a more modest and strategic approach to future economic evaluation may provide a more useful input to developing responses to homelessness.