Existence and Magnitude of Health-related Externalities: Evidence from a Choice Experiment

Jeremiah Hurley and Emmanouil Mentzakis

Department of Economics Working Papers from McMaster University

Abstract: Health-related external benefits are of potentially large importance for public policy. This paper investigates health-related external benefits using a stated-preference discrete-choice experiment framed in a health care context and including choice scenarios de ned by six attributes related to the a recipient and the recipient's condition: communicability, severity, medical necessity, relationship to respondent, location, and amount of contribution requested. Subjects also completed a set of own-treatment scenarios and a values-orientation instrument. We find evidence of substantial health-related external benefits that vary as expected with the scenario attributes and subjects' value orientations. The results are consistent with a number of hypotheses offered by the general theoretical analysis of health-related externalities and the analysis of externalities specific to health care.

Keywords: externalities; altruism; health care financing; program evaluation (search for similar items in EconPapers)
JEL-codes: C91 H23 I18 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2011-02
New Economics Papers: this item is included in nep-hea
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Working Paper: Existence and Magnitude of Health-related Externalities: Evidence from a Choice Experiment (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:mcm:deptwp:2011-01

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