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Testing the convergent validity of the contingent valuation and travel cost methods in valuing the benefits of health care

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Author Info
Philip M. Clarke (Health Economics Research Centre, Institute of Health Sciences, University of Oxford, Oxford OX3 7LF, UK)
Abstract

In this study, the convergent validity of the contingent valuation method (CVM) and travel cost method (TCM) is tested by comparing estimates of the willingness to pay (WTP) for improving access to mammographic screening in rural areas of Australia. It is based on a telephone survey of 458 women in 19 towns, in which they were asked about their recent screening behaviour and their WTP to have a mobile screening unit visit their nearest town. After eliminating missing data and other non-usable responses the contingent valuation experiment and travel cost model were based on information from 372 and 319 women, respectively. Estimates of the maximum WTP for the use of mobile screening units were derived using both methods and compared. The highest mean WTP estimated using the TCM was $83.10 (95% C.I. $99.06-$68.53), which is significantly less than the estimate of $148.09 ($131.13-$166.60) using the CVM. This could be due to the CVM estimates also reflecting non-use values such as altruism, or a range of potential biases that are known to affect both methods. Further tests of validity are required in order to gain a greater understanding of the relationship between these two methods of estimating WTP. Copyright © 2001 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.651
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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 11 (2002)
Issue (Month): 2 ()
Pages: 117-127
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Handle: RePEc:wly:hlthec:v:11:y:2002:i:2:p:117-127

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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.:
  1. Schkade David A. & Payne John W., 1994. "How People Respond to Contingent Valuation Questions: A Verbal Protocol Analysis of Willingness to Pay for an Environmental Regulation," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 88-109, January. [Downloadable!] (restricted)
  2. Bengt Kristrom, 1990. "A Non-Parametric Approach to the Estimation of Welfare Measures in Discrete Response Valuation Studies," Land Economics, University of Wisconsin Press, vol. 66(2), pages 135-139. [Downloadable!] (restricted)
  3. Clarke, Philip M., 1998. "Cost-benefit analysis and mammographic screening: a travel cost approach," Journal of Health Economics, Elsevier, vol. 17(6), pages 767-787, December. [Downloadable!] (restricted)
  4. Holmes Thomas P. & Kramer Randall A., 1995. "An Independent Sample Test of Yea-Saying and Starting Point Bias in Dichotomous-Choice Contingent Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 121-132, July. [Downloadable!] (restricted)
  5. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-30, January. [Downloadable!] (restricted)
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  6. Hanemann, William Michael & Kanninen, Barbara Joan, 1996. "The statistical analysis of discrete-response CV data," CUDARE Working Paper Series 798, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy. [Downloadable!]
  7. Clarke, Philip M, 2000. "Valuing the Benefits of Mobile Mammographic Screening Units Using the Contingent Valuation Method," Applied Economics, Taylor and Francis Journals, vol. 32(13), pages 1647-55, October. [Downloadable!] (restricted)
  8. Alan Diener & Bernie O'Brien & Amiram Gafni, 1998. "Health care contingent valuation studies: a review and classification of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 313-326.
  9. Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," Land Economics, University of Wisconsin Press, vol. 72(1), pages 80-99. [Downloadable!] (restricted)
  10. Richard C. Ready & Jean C. Buzby & Dayuan Hu, 1996. "Differences between Continuous and Discrete Contingent Value Estimates," Land Economics, University of Wisconsin Press, vol. 72(3), pages 397-411. [Downloadable!] (restricted)
  11. Nyquist, Hans, 1992. "Optimal Designs of Discrete Response Experiments in Contingent Valuation Studies," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 559-63, August. [Downloadable!] (restricted)
  12. W. Michael HANEMANN & Barbara KANNINEN, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 798, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
  13. Cauley, Stephen Day, 1987. "The Time Price of Medical Care," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 59-66, February. [Downloadable!] (restricted)
  14. Culyer, A J, 1971. "The Nature of the Commodity 'Health Care' and Its Efficient Allocation," Oxford Economic Papers, Oxford University Press, vol. 23(2), pages 189-211, July. [Downloadable!] (restricted)
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  1. Bernard van den Berg & Ada Ferrer-i-Carbonell, 2007. "Monetary valuation of informal care: the well-being valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 16(11), pages 1227-1244. [Downloadable!]
  2. Akbar Marvasti, 2006. "A Contingent Valuation of Customer Delay in Medical Services," Eastern Economic Journal, Eastern Economic Association, vol. 32(1), pages 31-45, Winter. [Downloadable!]
  3. John C. Whitehead & Bruce K. Johnson & Daniel S. Mason & Gordon J. Walker, 2009. "Using Revealed and Stated Preference Data to Estimate the Demand and Consumption Benefits of Sporting Events: An Application to National Hockey League Game Trips," Working Papers 09-13, Department of Economics, Appalachian State University. [Downloadable!]
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