Abstract
We argue that the economic evaluation of health care (cost-benefit analysis) should respect individual preferences and should incorporate distributional considerations. Relying on individual preferences does not imply subjective welfarism. We propose a particular non-welfarist approach, based on the concept of equivalent income, and show how it helps to define distributional weights. We illustrate the feasibility of our approach with empirical results from a pilot survey.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 711-729 |
| Number of pages | 19 |
| Journal | Health Economics (United Kingdom) |
| Volume | 22 |
| Issue number | 6 |
| DOIs | |
| State | Published - Jun 2013 |
All Science Journal Classification (ASJC) codes
- Health Policy
Keywords
- cost-benefit analysis
- cost-effectiveness analysis
- equivalent income
- social welfare function
- willingness to pay