The lifetime costs and benefits of medical technology
AbstractMeasuring the lifetime costs and benefits of medical technologies is essential in evaluating technological change and determining the productivity of medical care. Using data on Medicare beneficiaries with a heart attack in the late 1980s and 17 years of follow up data, I evaluate the long-term costs and benefits of revascularization after a heart attack. I account for non-random selection into treatment with instrumental variables; following McClellan, McNeil, and Newhouse, the instrument is the differential distance to a hospital capable of providing revascularization. The results show that revascularization is associated with over 1 year of additional life expectancy, at a cost of about $40,000. Revascularization, or other treatments correlated with it, appears to be highly cost-effective.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 26 (2007)
Issue (Month): 6 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505560
Other versions of this item:
- David M. Cutler, 2007. "The Lifetime Costs and Benefits of Medical Technology," NBER Working Papers 13478, National Bureau of Economic Research, Inc.
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McClellan, Mark & Newhouse, Joseph P., 1997. "The marginal cost-effectiveness of medical technology: A panel instrumental-variables approach," Journal of Econometrics, Elsevier, vol. 77(1), pages 39-64, March.
- Garber, Alan M. & Phelps, Charles E., 1997. "Economic foundations of cost-effectiveness analysis," Journal of Health Economics, Elsevier, vol. 16(1), pages 1-31, February.
- David Meltzer, 1997. "Accounting for Future Costs in Medical Cost-Effectiveness Analysis," NBER Working Papers 5946, National Bureau of Economic Research, Inc.
- Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
- Newey, W.K., 1989.
"Efficient Instrumental Variables Estimation Of Nonlinear Models,"
341, Princeton, Department of Economics - Econometric Research Program.
- Newey, Whitney K, 1990. "Efficient Instrumental Variables Estimation of Nonlinear Models," Econometrica, Econometric Society, vol. 58(4), pages 809-37, July.
- Amitabh Chandra & Douglas O. Staiger, 2007. "Productivity Spillovers in Health Care: Evidence from the Treatment of Heart Attacks," Journal of Political Economy, University of Chicago Press, vol. 115, pages 103-140.
- Meltzer, David, 1997. "Accounting for future costs in medical cost-effectiveness analysis," Journal of Health Economics, Elsevier, vol. 16(1), pages 33-64, February.
- Robert S. Huckman & Gary P. Pisano, 2006. "The Firm Specificity of Individual Performance: Evidence from Cardiac Surgery," Management Science, INFORMS, vol. 52(4), pages 473-488, April.
- Joseph J. Doyle, 2011. "Returns to Local-Area Health Care Spending: Evidence from Health Shocks to Patients Far from Home," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 221-43, July.
- Daysal, N. Meltem & Trandafir, M. & Ewijk, R. van, 2012.
"Saving Lives at Birth: The Impact of Home Births on Infant Outcomes,"
2012-077, Tilburg University, Center for Economic Research.
- Daysal, N. Meltem & Trandafir, Mircea & van Ewijk, Reyn, 2012. "Saving Lives at Birth: The Impact of Home Births on Infant Outcomes," IZA Discussion Papers 6879, Institute for the Study of Labor (IZA).
- N. Meltem Daysal & Mircea Trandafir & Reyn van Ewijk, 2012. "Saving Lives at Birth: The Impact of Home Births on Infant Outcomes," Cahiers de recherche 12-11, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Schreyögg, Jonas & Bäumler, Michael & Busse, Reinhard, 2009. "Balancing adoption and affordability of medical devices in Europe," Health Policy, Elsevier, vol. 92(2-3), pages 218-224, October.
- Michael Bäumler & Tom Stargardt & Jonas Schreyögg & Reinhard Busse, 2012. "Cost Effectiveness of Drug-Eluting Stents in Acute Myocardial Infarction Patients in Germany," Applied Health Economics and Health Policy, Springer, vol. 10(4), pages 235-248, July.
- Claudine de Meijer & Marc Koopmanschap & Owen O'Donnell & Eddy van Doorslaer, 2012. "Health Expenditure Growth: Looking beyond the Average through Decomposition of the Full Distribution," Tinbergen Institute Discussion Papers 12-051/3, Tinbergen Institute.
- Claudine de Meijer & Marc Koopmanschap & Owen O'Donnell & Eddy van Doorslaer, 2012.
"Health Expenditure Growth: Looking beyond the Average through Decomposition of the Full Distribution,"
Tinbergen Institute Discussion Papers
12-051/3, Tinbergen Institute.
- de Meijer, Claudine & O’Donnell, Owen & Koopmanschap, Marc & van Doorslaer, Eddy, 2013. "Health expenditure growth: Looking beyond the average through decomposition of the full distribution," Journal of Health Economics, Elsevier, vol. 32(1), pages 88-105.
- Joshua Graff Zivin & Matthew Neidell, 2013.
"Environment, Health, and Human Capital,"
Journal of Economic Literature,
American Economic Association, vol. 51(3), pages 689-730, September.
- Juan Oliva-Moreno, 2012. "Loss of labour productivity caused by disease and health problems: what is the magnitude of its effect on Spain’s Economy?," The European Journal of Health Economics, Springer, vol. 13(5), pages 605-614, October.
- Jack, William & Lewis, Maureen, 2009. "Health investments and economic growth : macroeconomic evidence and microeconomic foundations," Policy Research Working Paper Series 4877, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.