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Willingness to pay for publicly-financed health care: how should we use the numbers?

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  • Phil Shackley
  • Cam Donaldson

Abstract

This paper addresses the question of how willingness to pay (WTP) values in health care evaluation can be used by policy makers. The way in which WTP values are used depends on from whom values are elicited and whether the good concerned is privately-financed or publicly-financed through taxation. Thus, four possible uses of WTP values are identified. The focus is on the two uses which arise in the publiclyfinanced situation. 'Conventional' use of WTP values, where the decision as to whether or not to provide a service depends upon whether or not WTP values are greater than total cost, applies only in the privately-financed, and not publiclyfinanced situations. The situations with publicly-financed goods are more complex. The use of WTP values for publicly-financed goods is justified and illustrated.

Suggested Citation

  • Phil Shackley & Cam Donaldson, 2000. "Willingness to pay for publicly-financed health care: how should we use the numbers?," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 2015-2021.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2015-2021
    DOI: 10.1080/00036840050155940
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    References listed on IDEAS

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    6. Ryan, Mandy & Ratcliffe, Julie & Tucker, Janet, 1997. "Using willingness to pay to value alternative models of antenatal care," Social Science & Medicine, Elsevier, vol. 44(3), pages 371-380, February.
    7. Cam Donaldson & Phil Shackley & Mona Abdalla, 1997. "Using Willingness To Pay To Value Close Substitutes: Carrier Screening for Cystic Fibrosis Revisited," Health Economics, John Wiley & Sons, Ltd., vol. 6(2), pages 145-159, March.
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    Cited by:

    1. Cam Donaldson & Helen Mason & Phil Shackley, 2012. "Contingent Valuation in Health Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 40, Edward Elgar Publishing.
    2. Havet Nathalie & Morelle Magali & Remonnay Raphaël & Carrere Marie-Odile, 2011. "Valuing the Benefit for Cancer Patients of Receiving Blood Transfusions at Home," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 1-19, August.
    3. David Christafore & Susane Leguizamon, 2015. "Willingness to Pay for Hospital Access in Areas with High Concentrations of Blacks," The Review of Regional Studies, Southern Regional Science Association, vol. 45(1), pages 87-104, Spring.
    4. Sabina Sanghera & Emma Frew & Janesh Gupta & Joe Kai & Tracy Roberts, 2015. "Exploring the Use of Cost-Benefit Analysis to Compare Pharmaceutical Treatments for Menorrhagia," PharmacoEconomics, Springer, vol. 33(9), pages 957-965, September.
    5. Leguizamon, Susane & Christafore, David, 2014. "Racial Differences in Willingness to Pay for Hospital Access," MPRA Paper 55926, University Library of Munich, Germany.
    6. Emily Lancsar & Jordan Louviere, 2008. "Conducting Discrete Choice Experiments to Inform Healthcare Decision Making," PharmacoEconomics, Springer, vol. 26(8), pages 661-677, August.
    7. Christopher G. Fawsitt & Jane Bourke & Aileen Murphy & Brendan McElroy & Jennifer E. Lutomski & Rosemary Murphy & Richard A. Greene, 2017. "A Cost-Benefit Analysis of Two Alternative Models of Maternity Care in Ireland," Applied Health Economics and Health Policy, Springer, vol. 15(6), pages 785-794, December.

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