Skip to main content Accessibility help
×
Home

The Concept of Cost in the Economic Evaluation of Health Care: A Theoretical Inquiry

  • Magnus Johannesson (a1)

Abstract

The costs included in economic evaluations of health care vary from study to study. Based on the theory of cost-benefit analysis, the costs that should be included in an economic evaluation are those not already included in the measurement of willingness to pay (net willingness to pay above any treatment costs paid by the individual) in a cost-benefit analysis or in the easurement of effectiveness in a cost-effectiveness analysis. These costs can be defined as the onsumption externality of the treatment (the change in production minus consumption for those included in the treatment program). For a full economic evaluation, the consequences for those included in the treatment program and a caring externality (altruism) should also be added.

Copyright

References

Hide All
1.Arrow, K. J., & Lind, R. C.Uncertainty and the evaluation of public investment decisions. American Economic Review, 1970, 60, 364–78.
2.Berger, M. C., Blomquist, G. C., Kenkel, D., & Tolley, G. S.Valuing changes in health risks: A comparison of alternative measures. Southern Economic Journal, 1987, 53, 967–84.
3.Buchanan, J. M.Cost and choice: An inquiry in economic theory. Chicago, IL: Markham Publishing Company, 1969.
4.Drummond, M. F., Stoddart, G. L., & Torrance, G. W.Methods for the economic evaluation of health care programmes. Oxford, England: Oxford Medical Publications, 1987.
5.Hicks, J. R.The foundations of welfare economics. Economic Journal, 1939, 49, 696712.
6.Hicks, J. R.The four consumer’s surpluses. The Review of Economic Studies, 1941, 11, 3141.
7.Johansson, P.-O.An introduction to modern welfare economics. Cambridge, England: Cambridge University Press, 1991.
8.Johansson, P.-O.Altruism in cost-benefit analysis. Environmental and Resource Economics, 1992, 2, 605–13.
9.Jones-Lee, M. W.Altruism and the value of other people’s safety. Journal of Risk and Uncertainty, 1991, 4, 213–19.
10.Jones-Lee, M. W.Paternalistic altruism and the value of a statistical life. Economic Journal, 1992, 102, 8090.
11.Klarman, H. E., Francis, J. O. S., & Rosenthal, G.Cost-effectiveness analysis applied to the treatment of chronic renal disease. Medical Care, 1968, 6, 4854.
12.Mishan, E. J.Evaluation of life and limb: A theoretical approach. Journal of Political Economy, 1971, 179, 687705.
13.Ridker, R. G.The economic costs of air pollution. New York: Praeger, 1967.
14.Sugden, R., & Williams, A.The principles of practical cost benefit analysis. Oxford, England: Oxford University Press, 1978.
15.Weinstein, M. C.Principles of cost-effective resource allocation in health care organizations. International Journal of Technology Assessment in Health Care, 1990, 6, 93103.
16.Weinstein, M. C., & Stason, W. B.Hypertension: A policy perspective. Cambridge, MA: Harvard University Press, 1976.
17.Weisbrod, B.Economics of public health: Measuring the impact of diseases. Philadelphia, PA: University of Pennsylvania Press, 1961.

Related content

Powered by UNSILO

The Concept of Cost in the Economic Evaluation of Health Care: A Theoretical Inquiry

  • Magnus Johannesson (a1)

Metrics

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.