Addressing risk preferences in cost-effectiveness analyses.

Joshua Graff Zivin, John F. Bridges

Research output: Contribution to journalArticle

Abstract

Cost-effectiveness analysis is a form of economic evaluation that compares that compares the costs and effectiveness of health interventions, where effectiveness is measured in a single scale. Despite the growth in the popularity of cost-effectiveness analysis, very few cost-effectiveness analyses adequately measure and account for uncertainty. In the health economics literature, two schools of thought are emerging. The first takes a statistical approach to uncertainty by focusing on the likelihood that a decision making error will be made. The second approach applies and develops economic theories of risk preference that consider the welfare implications for a patient when they are presented with interventions that have uncertain health outcomes. Cost-effectiveness analyses need to account for risk preferences if they claim to be increasing patient welfare.

Original languageEnglish (US)
Pages (from-to)135-139
Number of pages5
JournalApplied Health Economics and Health Policy
Volume1
Issue number3
StatePublished - 2002
Externally publishedYes

Fingerprint

Cost-Benefit Analysis
Uncertainty
Health
Economics
Cost-effectiveness analysis
Cost-effectiveness
Risk preferences
Decision Making
Growth
Health economics
Economic theory
Welfare implications
Decision making
Schools of thought
Health outcomes
Economic evaluation
Costs

ASJC Scopus subject areas

  • Economics and Econometrics
  • Health Policy

Cite this

Addressing risk preferences in cost-effectiveness analyses. / Zivin, Joshua Graff; Bridges, John F.

In: Applied Health Economics and Health Policy, Vol. 1, No. 3, 2002, p. 135-139.

Research output: Contribution to journalArticle

Zivin, Joshua Graff ; Bridges, John F. / Addressing risk preferences in cost-effectiveness analyses. In: Applied Health Economics and Health Policy. 2002 ; Vol. 1, No. 3. pp. 135-139.
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