AbstractThis study applies benefit‐cost analysis to one area of prenatal diagnosis— amniocentesis. The ultimate purpose of such a study is to provide useful guidelines to policy makers. An attempt is made to exhaustively list benefits and costs, whether measurable or not. Those which can be quantified are estimated. On the basis of these benefit‐cost estimates, the study concludes that a program of amniocentesis for all pregnant women beyond age 32 would be warranted. This economic analysis, however, is only one aspect of a policy decision. Moral, legal, and ethical questions must also be considered.