Advances in cost-effectiveness analysis of health interventions
Alan M. Garber
Chapter 04 in Handbook of Health Economics, 2000, vol. 1, pp 181-221 from Elsevier
Recent work has clarified the welfare implications of the application of cost-effectiveness analysis to the allocation of health care. Although cost-effectiveness analysis shares many similarities with cost-benefit analysis, it did not develop as an outgrowth of neoclassical welfare economics. Consequently, even though the welfare implications of public decisionmaking based on cost-benefit analysis have long been understood, until recently the conditions under which decisions made on the basis of cost-effectiveness criteria lead to potential Pareto improvement had received little attention.This chapter describes the welfare economic foundations of cost-effectiveness analysis and how such foundations can be applied to resolve controversies in the application of the technique. It also discusses procedures for applying the technique, the circumstances under which decision rules based on cost-effectiveness analysis have desirable welfare economic properties, the appropriate perspective for the analysis, and issues in measuring outcomes. Even when standard welfare economic assumptions are not fully accurate descriptions of the markets and conditions in which health care is delivered, cost-effectiveness analysis can be a useful guide to allocation decisions.
JEL-codes: I1 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed
Downloads: (external link)
http://www.sciencedirect.com/science/article/B7P5R ... dab5dfd49222a9500601
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:heachp:1-04
Access Statistics for this chapter
More chapters in Handbook of Health Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().