False Alarm? Estimating the Marginal Value of Health Signals

Toshiaki Iizuka, Katsuhiko Nishiyama, Brian Chen and Karen Eggleston

No 23413, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We investigate the marginal value of information in the context of health signals after checkups. Although underlying health status is similar for individuals just below and above a clinical threshold, treatments differ according to the checkup signals they receive. For the general population, whereas health warnings about diabetes increase healthcare utilization, health outcomes do not improve at the threshold. However, among high-risk individuals, outcomes do improve, and improved health is worth its cost. These results indicate that the marginal value of health information depends on setting appropriate thresholds for health warnings and targeting individuals most likely to benefit from follow-up medical care.

JEL-codes: I10 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-dcm and nep-hea
Note: EH
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Citations: View citations in EconPapers (6)

Published as Iizuka, Toshiaki & Nishiyama, Katsuhiko & Chen, Brian & Eggleston, Karen, 2021. "False alarm? Estimating the marginal value of health signals," Journal of Public Economics, Elsevier, vol. 195(C).

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Journal Article: False alarm? Estimating the marginal value of health signals (2021)
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