SARDAR M.N. ISLAM is Professor of Welfare and Environmental Economics and Director of the Sustainable Growth Program at the Centre for Strategic Studies, Victoria University, Australia. His areas of teaching and research interests in economics are welfare economics, computerized economic modelling, development and growth economics, environmental and resource economics and health economics. He has published extensively. CHRISTINE MAK is a Research Scholar at the Centre for Strategic Studies, Victoria University, Australia, who has extensive publishing experience in the field of welfare e

'All health organisations and jurisdictions through-out the world are faced with the challenge of how to fund an increasingly complex health system. Whether the issue is how to decide on which new treatment should be made available to whom in a well developed health system or to decide on what basic prophylactic or pharmacologic intervention can be afforded in a transitional country. Choices are often difficult and complex. This new text develops a pragmatic approach to this problem using the case study of pharmaceuticals and applying the key principles of moral philosophy and welfare economics.' - Ian Rouse, Professor and Executive Dean, Faculty of Health Engineering and Science, Victoria University, Australia With a Foreword from Professor Elizabeth Harman, Vice - Chancellor, Victoria University, Australia

• Introduction Economic Evaluation of Health Programs: The Case for Cost Benefit Analysis New³ Cost Benefit Analysis Economic Evaluation: The Case of the Australian PBS Costs and Benefits Estimates Cost Benefit Analysis of PBS Australia PBS Planning: Modelling and Implications Summary and Conclusion