Hostname: page-component-cd9895bd7-lnqnp Total loading time: 0 Render date: 2024-12-25T05:48:27.813Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  10 March 2009

Magnus Johannesson
Magnus Johannesson
Affiliation:
Stockholm School of Economics and Harvard School of Public Health
Get access Rights & Permissions [Opens in a new window]

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.

Type
General Essays
Information
International Journal of Technology Assessment in Health Care , Volume 10 , Issue 4 , Fall 1994 , pp. 675 - 682
Copyright
Copyright © Cambridge University Press 1994

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

1.Arrow, K. J., & Lind, R. C.Uncertainty and the evaluation of public investment decisions. American Economic Review, 1970, 60, 364–78.Google Scholar
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.CrossRefGoogle Scholar
3.Buchanan, J. M.Cost and choice: An inquiry in economic theory. Chicago, IL: Markham Publishing Company, 1969.Google Scholar
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.Google Scholar
5.Hicks, J. R.The foundations of welfare economics. Economic Journal, 1939, 49, 696–712.CrossRefGoogle Scholar
6.Hicks, J. R.The four consumer’s surpluses. The Review of Economic Studies, 1941, 11, 31–41.CrossRefGoogle Scholar
7.Johansson, P.-O.An introduction to modern welfare economics. Cambridge, England: Cambridge University Press, 1991.CrossRefGoogle Scholar
8.Johansson, P.-O.Altruism in cost-benefit analysis. Environmental and Resource Economics, 1992, 2, 605–13.CrossRefGoogle Scholar
9.Jones-Lee, M. W.Altruism and the value of other people’s safety. Journal of Risk and Uncertainty, 1991, 4, 213–19.CrossRefGoogle Scholar
10.Jones-Lee, M. W.Paternalistic altruism and the value of a statistical life. Economic Journal, 1992, 102, 80–90.CrossRefGoogle Scholar
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, 48–54.CrossRefGoogle Scholar
12.Mishan, E. J.Evaluation of life and limb: A theoretical approach. Journal of Political Economy, 1971, 179, 687–705.CrossRefGoogle Scholar
13.Ridker, R. G.The economic costs of air pollution. New York: Praeger, 1967.Google Scholar
14.Sugden, R., & Williams, A.The principles of practical cost benefit analysis. Oxford, England: Oxford University Press, 1978.Google Scholar
15.Weinstein, M. C.Principles of cost-effective resource allocation in health care organizations. International Journal of Technology Assessment in Health Care, 1990, 6, 93–103.CrossRefGoogle ScholarPubMed
16.Weinstein, M. C., & Stason, W. B.Hypertension: A policy perspective. Cambridge, MA: Harvard University Press, 1976.CrossRefGoogle Scholar
17.Weisbrod, B.Economics of public health: Measuring the impact of diseases. Philadelphia, PA: University of Pennsylvania Press, 1961.CrossRefGoogle Scholar