 The value of disease prevention vs treatmentChristoph Rheinberger, Daniel Herrera-Araujo and James Hammitt Post-Print from HAL Abstract: We present an integrated valuation model for diseases that are life-threatening. The model extends the standard one-period value-per-statistical-life model to three health prospects: healthy, ill, and dead. We derive willingness-to-pay values for prevention efforts that reduce a disease's incidence rate as well as for treatments that lower the corresponding health deterioration and mortality rates. We find that the demand value of prevention always exceeds that of treatment. People often overweight small risks and underweight large ones. We use the rank dependent utility framework to explore how the demand for prevention and treatment alters when people evaluate probabilities in a non-linear manner. For incidence and mortality rates associated with common types of cancers, the inverseS shaped probability weighting found in experimental studies leads to a significant increase in the demand values of both treatment and prevention. Keywords: JEL classification:; D11; D81; I10; Keywords:; Health risk valuation; Chronic disease; Willingness-to-pay; Probability weighting (search for similar items in EconPapers) Published in Journal of Health Economics, 2016, 50, pp.247 - 255. ⟨10.1016/j.jhealeco.2016.08.005⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01626801 DOI: 10.1016/j.jhealeco.2016.08.005 Access Statistics for this paper More papers in Post-Print from HAL |
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