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Confidence intervals for cost/effectiveness ratios

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  • Peter Wakker
  • Marc P. Klaassen

Abstract

The reduction of costs is becoming increasingly important in the medical field. The relevant topic of many clinical trials is not effectiveness per se, but rather cost‐effectiveness ratios. Surprisingly, no statistical tools for analyzing cost‐effectiveness ratios have been provided in the medical literature yet. This paper explains the gap in the literature, and provides a first technique for obtaining confidence intervals for cost‐effectiveness ratios. The technique does not use sophisticated tools to achieve maximal optimality, but seeks for tractability and ease of application while still satisfying all formal statistical requirements.

Suggested Citation

  • Peter Wakker & Marc P. Klaassen, 1995. "Confidence intervals for cost/effectiveness ratios," Health Economics, John Wiley & Sons, Ltd., vol. 4(5), pages 373-381, September.
    • Handle: RePEc:wly:hlthec:v:4:y:1995:i:5:p:373-381
    DOI: 10.1002/hec.4730040503
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    References listed on IDEAS

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    1. Andrew Briggs & Mark Sculpher & Martin Buxton, 1994. "Uncertainty in the economic evaluation of health care technologies: The role of sensitivity analysis," Health Economics, John Wiley & Sons, Ltd., vol. 3(2), pages 95-104, March.
    2. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    3. Rutten, Frans F. H. & Bonsel, Gouke J., 1992. "High cost technology in health care: A benefit or a burden?," Social Science & Medicine, Elsevier, vol. 35(4), pages 567-577, August.
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    Cited by:

    1. Briggs, Andrew & Tambour, Magnus, 1998. "The design and analysis of stochastic cost-effectiveness studies for the evaluation of health care interventions," SSE/EFI Working Paper Series in Economics and Finance 234, Stockholm School of Economics.
    2. Mennemeyer, Stephen T. & Cyr, Louis P., 1997. "A bootstrap approach to medical decision analysis," Journal of Health Economics, Elsevier, vol. 16(6), pages 741-747, December.
    3. Claxton, Karl, 1999. "The irrelevance of inference: a decision-making approach to the stochastic evaluation of health care technologies," Journal of Health Economics, Elsevier, vol. 18(3), pages 341-364, June.
    4. Kobelt, G., 2013. "Health Economics: An Introduction to Economic Evaluation," Monographs, Office of Health Economics, number 000004.
    5. Etzioni, Ruth D. & Feuer, Eric J. & Sullivan, Sean D. & Lin, Danyu & Hu, Chengcheng & Ramsey, Scott D., 1999. "On the use of survival analysis techniques to estimate medical care costs," Journal of Health Economics, Elsevier, vol. 18(3), pages 365-380, June.
    6. Demissie Alemayehu, 2014. "Methodological Considerations in Cost-Effectiveness Analysis," Proceedings of Economics and Finance Conferences 0401651, International Institute of Social and Economic Sciences.
    7. Ana P. Johnson-Masotti & Purushottam W. Laud & Raymond G. Hoffmann & Matthew J. Hayat & Steven D. Pinkerton, 2001. "Probabilistic Cost-Effectiveness Analysis of HIV Prevention," Evaluation Review, , vol. 25(4), pages 474-502, August.

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