The purpose of this course is to set out the methods of economic evaluation as they are applied to interventions and policies in the mental health area. The need for economic evaluation will be outlined, followed by a discussion of the main principles of evaluation. The core approaches that economists have taken to the evaluation of interventions will be described: cost-effectiveness analysis, cost-utility analysis and cost-benefit analysis. These approaches vary in their method, and more importantly vary in the policy and practice questions that they seek to address. The relatively new net benefit approach, and the development of cost-effectiveness acceptability curves will be included in this description. Each of these approaches to economic evaluation will be illustrated by drawing on completed and on-going studies in the mental health field, spanning the range of patient groups, psychological and pharmacological therapies, organisational initiatives such as specialist community teams, enhancements to standard primary care, closure of psychiatric hospitals. The examples will draw on experience from across a number of countries.

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