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Equivalent income and the economic evaluation of health care

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Author Info

  • FLEURBAYE, Marc

    ()
    (Université Paris-Descartes, CERSES, France; Université catholique de Louvain, CORE, B-1348 Louvain- la-Neuve, Belgium)

  • LUCHINI, Stéphane

    ()
    (CNRS, GREQAM and IDEP, France)

  • MULLER, Christophe

    ()
    (DEFI, University of Méditerranée, France)

  • SCHOKKAERT, Eric

    ()
    (Department of Economics, Katholieke Universiteit Leuven and Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

Abstract

We argue that the economic evaluation of health care (cost-benefit analysis) should respect individual preferences and should incorporate distributional consid- erations. Relying on individual preferences does not imply subjective welfarism. We propose a particular non- welfarist approach, based on the concept of equivalent income, and show how it helps to define distributional weights. We illustrate the feasibility of our approach with empirical results from a pilot survey.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2010006.

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Date of creation: 01 Jan 2010
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Handle: RePEc:cor:louvco:2010006

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Related research

Keywords: cost-benefit analysis; cost-effectiveness analysis; willingness-to-pay; social welfare function; equivalent income;

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Cited by:
  1. FLEURBAEY, Marc & SCHOKKAERT, Erik, 2011. "Equity in health and health care," CORE Discussion Papers 2011026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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