AFI65-501 governs economic analysis for Air Force management and financial decisions involving the use of scarce resources.
View AFI65-501 on armypubs.army.mil
AFI65-501 defines economic analysis as a systematic approach for comparing alternatives by weighing costs, benefits, and uncertainties. It covers comparative analyses, analytical studies, and the documentation of resource decisions.
Applies to: This publication applies to individuals and organizations at all levels of the Regular Air Force, Air Force Reserve and Air National Guard (ANG), who make resource decisions.
Economic analysis is a systematic approach to the problem of deciding how to use scarce resources to achieve a given objective.
Proper use of the economic analysis approach yields an impartial comparison of competing alternatives to achieve the objective by weighing the costs, benefits, and uncertainties (including risks) for each alternative.
Consistent with DoDI 7041.03, Economic Analysis for Decision-making, analytic studies that deal with cost and benefit considerations fit under the definition of “economic analysis” (even though not specifically titled as such) and must adhere to the policy in this Instruction. (T-1).
The economic analysis approach can be applied to any type of decision.
The economic analysis approach does not replace the judgment of the decision maker, but rather aids that judgment.