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An implicit price of a DALY for use in a cost-benefit analysis of ARVs

Robert Brent

Applied Economics, 2011, vol. 43, issue 11, 1413-1421

Abstract: This article uses the revealed preference approach to estimate the price for a Disability Adjusted Life Year (DALY) implied by grant decisions by the Global Fund for AIDS, tuberculosis (TB) and malaria (GFATM). A cost-benefit criterion is used that requires the DALY price exceed the cost-effectiveness ratio. The estimated price was $6300 for a DALY saved from any disease, but it was $11 900 from a DALY saved specifically from HIV/AIDS. Estimates of the cost-effectiveness ratios of Antiretroviral Drug Therapies (ARVs) in the literature were examined. At the DALY prices implicit by GFATM decisions, ARVs would be socially worthwhile.

Date: 2011
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DOI: 10.1080/00036840802600475

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