Document Type
Article
Publication Date
1-1-2010
Abstract
This short comment argues that both cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA) should be seen as imperfect tools for evaluating health policy. This is true, not only for extra-welfarists, but even for welfarists, since both CBA and CEA can deviate from the use of social welfare functions (SWF). A simple model is provided to illustrate the divergence between CBA, CEA, and the SWF approach. With this insight in mind, the comment considers the appropriate role of contingent-valuation studies. For full text, please see: http://www.law.upenn.edu/cf/faculty/madler/workingpapers/578A59B6d01.pdf.
Keywords
Cost-benefit analysis, CBA, cost-effectiveness analysis, CEA, willingness to pay, willingness to accept, extrawelfarism, welfarism, Kaldor-Hicks principle, social welfare functions, health policy choice, welfare theory
Publication Title
Health Economics, Policy & Law
Repository Citation
Adler, Matthew D., "Contingent Valuation Studies and Health Policy" (2010). All Faculty Scholarship. 303.
https://scholarship.law.upenn.edu/faculty_scholarship/303
Included in
Community Health and Preventive Medicine Commons, Economic Policy Commons, Economic Theory Commons, Ethics and Political Philosophy Commons, Health Economics Commons, Health Law and Policy Commons, Health Policy Commons, Law and Economics Commons, Public Law and Legal Theory Commons, Social Welfare Law Commons
Publication Citation
Health Economics, Policy & Law, Vol. 5, Pg. 123, 2010