The Economics Of Measuring Quality Of Life By The Standard Gamble Method
AbstractOf the countless methods for measuring the quality of life (QOL) that have been proposed and analyzed by the vast, multi-disciplinary literature over the past decades, only a select few are alluded to in Romanian scientific circles, and even fewer are actually implemented in practical applications. In adapting existing techniques and engineering a viable measurement system specific to Romania, there exists an important opportunity to re-evaluate the merits and shortcomings of established approaches. As a specific example, we consider the Standard Gamble (SG) method of eliciting “subjective utilities” related to particular health states. The re-evaluation is accomplished from three perspectives: theoretic consistency, interpretability and practicality. It is demonstrated that consistent with economic theory, the appropriate interpretation of SG derived measures is that of a Hicksian change in welfare valuation, rather than a cardinal measure of preferences. A practical consequence of the latter is that SG will necessarily produce a higher QOL value for individuals exhibiting more risk aversion. This leads us to contemplate that in fact SG may be a more appropriate methodology in other contexts, not necessarily health-related, where quality of life may indeed be correlated with the willingness to take risks.
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.
Bibliographic InfoArticle provided by Universitatea Spiru Haret in its journal Annals of Spiru Haret University, Economic Series.
Volume (Year): 2 (2011)
Issue (Month): 1 ()
Contact details of provider:
Postal: no. 13 Street Ion Ghica, Quarter 3, Bucharest, Cod postal: 030045, tel: (004021) 455.1000; 314.00.75; 314.00.76, fax: (004021) 314.39.08, e-mail: email@example.com
Phone: (004021) 455.1000
Fax: (004021) 314.39.08
Web page: http://anale-economie.spiruharet.ro/en/
More information through EDIRC
quality of life; measurement; cost-effectiveness analysis; von Neumann-Morgenstern utilities; Romanian well-being index;
Find related papers by JEL classification:
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- I19 - Health, Education, and Welfare - - Health - - - Other
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aurelian A BONDREA) or (Constantin Mecu) The email address of this maintainer does not seem to be valid anymore. Please ask Constantin Mecu to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.