This paper discusses the issues involved in application of benefit-cost analysis to health programs and suggests some new approaches to them. The method developed is applied to the case of measles vaccinations given in Yaounde, Cameroon in 1971-1976. the results show that high benefit-cost ratios are obtained under the most conservative assumptions. further, it is shown that giving more vaccination could have earned an even greater return. A Reed-Frost epidemiological model is used to find spillover benefits to vaccinations. A herd immunity level of 59 percent of the 6-26 months population is found.Center for Research on Economic Development, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/100875/1/ECON328.pd