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Valuing the benefits of publicly-provided health care: does 'ability to pay' preclude the use of 'willingness to pay'?

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  • Donaldson, Cam
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    Abstract

    The case against the use of willingness to pay (WTP) methods to value the benefits of publicly-provided health care is often made on the basis that WTP is associated with ability to pay. In this paper, it is demonstrated that this argument is not so straightforward, depending on two criteria: (a) the association of people's preferences with ability to pay and (b) the disparities of WTP for given options within categories of ability to pay. A method of dealing with ability to pay, based on these criteria, is proposed and illustrated through the use of data from a case study.

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    File URL: http://www.sciencedirect.com/science/article/B6VBF-3WN6Y1K-C/2/bef0799d08dc129f281ab9b383f66ad3
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    Bibliographic Info

    Article provided by Elsevier in its journal Social Science & Medicine.

    Volume (Year): 49 (1999)
    Issue (Month): 4 (August)
    Pages: 551-563

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    Handle: RePEc:eee:socmed:v:49:y:1999:i:4:p:551-563

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    Related research

    Keywords: Economic evaluation Measuring benefits Willingness to pay Utility Distribution of income;

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    Cited by:
    1. Marie-Odile Carrère & Nathalie Havet & Magali Morelle & Raphaël Remonnay, 2008. "Analyzing the determinants of willingness-to-pay values for testing the validity of the contingent valuation method. Application to home care compared to hospital care," Post-Print halshs-00303725, HAL.
    2. Shono, Aiko & Kondo, Masahide & Ohmae, Hiroshi & Okubo, Ichiro, 2014. "Willingness to pay for public health services in rural Central Java, Indonesia: Methodological considerations when using the contingent valuation method," Social Science & Medicine, Elsevier, vol. 110(C), pages 31-40.
    3. Mataria, Awad & Giacaman, Rita & Khatib, Rana & Moatti, Jean-Paul, 2006. "Impoverishment and patients' "willingness" and "ability" to pay for improving the quality of health care in Palestine: An assessment using the contingent valuation method," Health Policy, Elsevier, vol. 75(3), pages 312-328, February.
    4. Nathalie Havet & Magali Morelle & Raphaël Remonnay & Marie-Odile Carrere, 2012. "Cancer patients’ willingness to pay for blood transfusions at home: results from a contingent valuation study in a French cancer network," The European Journal of Health Economics, Springer, vol. 13(3), pages 289-300, June.
    5. Nathalie Havet & Magali Morelle & Alexis Penot & Raphaël Remonnay, 2012. "The information content of the WTP-WTA gap : An empirical analysis among severely ill patients," Working Papers halshs-00697762, HAL.
    6. Wagner, Todd H. & Hu, Teh-wei & Duenas, Grace V. & Kaplan, Celia P. & Nguyen, Bang H. & Pasick, Rena J., 2001. "Does willingness to pay vary by race/ethnicity? An analysis using mammography among low-income women," Health Policy, Elsevier, vol. 58(3), pages 275-288, December.
    7. David Whynes & Emma Frew & Jane Wolstenholme, 2005. "Willingness-to-Pay and Demand Curves: A Comparison of Results Obtained Using Different Elicitation Formats," International Journal of Health Care Finance and Economics, Springer, vol. 5(4), pages 369-386, December.
    8. Wagner, Todd H. & Hu, Teh-wei & Duenas, Grace V. & Pasick, Rena J., 2000. "Willingness to pay for mammography: item development and testing among five ethnic groups," Health Policy, Elsevier, vol. 53(2), pages 105-121, September.

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