When Do the Dollars Make Sense? : Toward a Conceptual Framework for Contingent Valuation Studies in Health Care
Author: Gafni, Amiram
Publisher: Hamilton, Ont. : Centre for Health Economics and Policy Analysis, McMaster University
Published: 1995
Total Pages: 51
ISBN-13:
DOWNLOAD EBOOKThere is a growing interest in the application of cost-benefit analysis (CBA) as a technique for the economic evaluation of health care programmes. A distinguishing feature of CBA is that costs and benefits are expressed in the same units of value - typically money. A popular method for estimating money values for health care programmes is the use of willingness-to-pay (or accept) survey techniques known as contingent valuation. In this paper we present a conceptual framework to help in the interpretation or design of contingent valuation studies in health care. To be consistent with the theory upon which CBA is built we consider what types of questions should be asked of what populations. We conclude that studies undertaking contingent valuation should distinguish between compensating and equivalent variation, and recognize that respondents can be gainers or losers in utility and therefore should be asked willingness-to-pay or accept questions as appropriate.