However, a clear specification of cost savings requires a detailed specification of the costs incurred.
Although TERA, like other parsimony based methods, requires the prior specification of the costs associated with duplication, transfer and loss (DTL) events, it does not require prior assumptions about a statistical support threshold, as it estimates a self-consistent support threshold from its input.
Each specification can be developed, measured, reviewed and revised independently, and measurement on all specifications, and of the cost, can be combined to show overall performance.
Sources of uncertainty in the specification of components of the cost measures are addressed by employing probabilistic sensitivity analyses, where the distributions of the variables representing the analytical assumptions are allowed to vary simultaneously, thus testing the robustness of our findings [ 51].
A key element in our approach is the specification of intervention cost functions at various coverage levels.
The remaining variables used in the behavioural cost function specification are not part of the cost minimization question but can be used to explain deviation of observed unit costs from the theoretical minimum functions – e.g., possible reasons for inefficiency [ 3].
The specification of which costs to include in the analysis depends on the perspective of the economic evaluation (Russell et al, 1996).
Whatever the empirical specification, the cost of capital always decreases after a capital market liberalization, with the effect varying between 5 and 90 basis points, depending on the specification.
Anything that is added to your car over and above the standard factory specification could increase the cost of car insurance.
"It costs us more to correct problems with tubes that don't meet specifications than the cost of the tubes alone," says Atkinson.
