Skip to main content Accessibility help
×
Home

The role of the payment vehicle in non-market valuations of a health care service: willingness-to-pay for an ambulance helicopter service

  • Dorte Gyrd-Hansen (a1)

Abstract

This study analyses the role of the payment vehicle when conducting non-market valuations of health care services using stated preference methods. Based on a contingent valuation study conducted in Denmark encompassing more than 3400 respondents three important conclusions are drawn. Firstly, it is found that the valuation of a publicly financed ambulance helicopter service is higher than for an identical privately financed service. Secondly, the results suggest that the public premium is likely to be partly driven by altruistic preferences, and that some citizens value access to this type of service for all. An important driver is also perceptions of quality of services across the private and public sector. Finally, it is shown that exclusion of protest bidders is problematic and may bias welfare estimates. The take home message is that it is difficult to isolate the value of a good per se, and that analysts should take care in applying the payment vehicle that is likely to be applied in real life when valuing non-market goods. There has been little awareness of the importance of choice of payment vehicle in the literature to date.

Copyright

Corresponding author

*Correspondence to: Dorte Gyrd-Hansen, COHERE, Department of Business and Economics, Institute of Public Health, University of Southern Denmark, Campusvej 55, 5230 Odense M, Denmark. Email: dgh@sam.sdu.dk

References

Hide All
Andersson, H. and Lindberg, G. (2009), ‘Benevolence and the value of road safety’, Accident Analysis and Prevention, 41: 286293.
Andreoni, J. (1989), ‘Giving with impure altruism; applications to charity and ricardian equivalence’, Journal of Political Economy, 97(6): 14471458.
Arana, J. E. and Leon, C. J. (2002), ‘Willingness to pay for health risk reduction in the context of altruism’, Health Economics, 11: 623635.
Breman, A. (2006), ‘The Economics of Altruism, Paternalism and Self-Control’, PhD thesis, The Economic Research Institute, Stockholm School of Economics, Sweden.
Carson, R. T. and Groves, T. (2007), ‘Incentive and informational properties of preference questions’, Environmental and Resource Economics, 37: 181210.
de Blaeij, A., Florax, R. J. G. M., Rietvald, P. and Verhoef, E. (2003), ‘The value of statistical life in road safety: a meta-analysis’, Accident Analysis & Prevention, 35: 973986.
Dziegielewska, D. A. and Mendelsohn, R. (2007), ‘Does “No” mean “No”? A protest methodology’, Environmental and Resource Economics, 38: 7187.
Edwards, S. F. and Anderson, G. D. (1987), ‘Overlooked biases in contingent valuation surveys: some considerations’, Land Economics, 63(2): 168178.
Fischhoff, B. and Furby, L. (1988), ‘Measuring values: a conceptual framework for interpreting transactions with special reference to contingent valuation of visibility’, Journal of Risk and Uncertainty, 1: 147184.
Gyrd-Hansen, D., Jensen, M. L. and Kjaer, T. (2014), ‘Framing the willingness-to-pay question: impact on response patterns and mean willingness to pay’, Health Economics, 23: 550563.
Halstead, J. M., Luloff, A. E. and Stevens, T. H. (1992), ‘Protest bidders in contingent valuation’, Northeastern Journal of Agricultural and Resource Economics, 21: 160169.
Heberlein, T. A., Willson, M. A., Bishop, R. C. and Schaeffer, N. C. (2005), ‘Rethinking the scope test as a criterion for validity in contingent valuation’, Journal of Environmental Economics and Management, 50(1): 122.
Hultkrantz, L., Lindberg, G. and Andersson, C. (2006), ‘The value of improved road safety’, Journal of Risk and Uncertainty, 32: 151170.
Jacobsson, F., Johannesson, M. and Borgquist, L. (2007), ‘Is altruism paternalistic?’, The Economic Journal, 117: 761781.
Johannesson, M., Johansson, P.-O. and O’Conor, R. M. (1996), ‘The value of private safety versus the value of public safety’, Journal of Risk and Uncertainty, 13: 263275.
Jones-Lee, M. V. (1991), ‘Altruism and the value of other people’s safety’, Journal of Risk and Uncertainty, 4: 213219.
Jorgensen, B. S., Syme, G. J., Bishop, B. J. and Nancarrow, B. E. (1999), ‘Protest responses in contingent valuation’, Environmental and Resource Economics, 14(1): 131150.
Martin-Lopez, B., Montes, C. and Benayas, J. (2008), ‘Economic valuation of biodiversity conservation: the meaning of numbers’, Conservation Biology, 22(3): 624635.
Messer, K. D., Poe, G. L. and Schulze, W. D. (2013), ‘The value of private versus public risk and pure altruism: an experimental economics test’, Applied Economics, 45(9): 10891097.
Meyerhoff, J. and Liebe, U. (2006), ‘Protest beliefs in contingent valuation: explaining their motivation’, Ecological Economics, 57(4): 583594.
Olsen, J. A., Kidholm, K., Donaldson, C. and Shackley, P. (2004), ‘Willingness to pay for public health care: a comparison of two approaches’, Health Policy, 70: 217228.
Pedersen, L. B., Kjaer, T. and Gyrd-Hansen, D. (2011), ‘The influence of information and private versus public provision on preferences for prostate cancer in Denmark: a willingness-to-pay study’, Health Policy, 101(3): 277289.
Shogren, J. (1990), ‘The impact of self-protection and self-insurance on individual response to risk’, Journal of Risk and Uncertainty, 3: 191204.
Smith, R. D. and Sach, T. C. (2010), ‘Contingent valuation: what needs to be done?’, Health Economics Policy and Law, 5: 91111.
Svensson, M. and Johansson, M. V. (2010), ‘Willingness to pay for private and public road safety in stated preference studies: why the difference?’, Accident Analysis and Prevention, 42: 12051212.
Tversky, A. and Kahneman, D. (1986), ‘Rational choice and the framing of decisions’, Journal of Business, 59: 251278.

The role of the payment vehicle in non-market valuations of a health care service: willingness-to-pay for an ambulance helicopter service

  • Dorte Gyrd-Hansen (a1)

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed