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Is there a case for using Visual Analogue Scale valuations in Cost-Utility Analysis?

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Author Info
David Parkin () (Department of Economics, City University, London)
Nancy Devlin () (Department of Economics, City University, London)

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Abstract

This paper critically reviews theoretical and empirical propositions regarding visual analogue scale (VAS) valuations of health states and their use in Cost Utility Analysis. An oft-repeated conclusion in the economic evaluation literature is the inferiority, on theoretical grounds, of VAS valuations. Common criticisms are that VAS lacks a theoretical foundation; that VAS values are not ‘choice based’; that VAS values are not consistent with utility-under-uncertainty requirements; and that context and range effects observed in VAS valuation data mean that they cannot even be considered to represent measurable value functions. We address each of the above points, critically reviewing the economic and psychometric literature relating to theories of utility and theories of utility measurement, and the welfarist and non-welfarist literature relating to social choices and QALYs. We conclude that there are strong grounds, both theoretical and empirical, for challenging the apparently emerging consensus that VAS valuations should not be used in economic assessments. The theoretical appeal of alternatives such as the standard gamble is valid only at the level of individuals, rather than social decision-making. Further, the non-welfarist foundations of CUA do not require health state valuations to be grounded in any particular theory of utility, suggesting that the selection of the appropriate valuation method should be based on empirical performance. The VAS has important advantages over rival techniques such as standard gamble and time trade-off. However, we identify a number of areas in which further research is required to establish and consolidate the potential of VAS as a valuation method.

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Paper provided by Department of Economics, City University, London in its series City University Economics Discussion Papers with number 04/03.

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Length: 24 pages
Date of creation: 05 Jul 2004
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Publication status: Published in Health Economics, 2006; 15(7): 653-664
Handle: RePEc:cty:dpaper:0403

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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. Sen, Amartya K, 1977. "Social Choice Theory: A Re-examination," Econometrica, Econometric Society, vol. 45(1), pages 53-89, January. [Downloadable!] (restricted)
  2. Ken Buckingham & Nancy Devlin & Maggie Tabberer, 2004. "A theoretical framework for TTO valuations and a taxonomy of TTO approaches: results from a pilot study," City University Economics Discussion Papers 04/07, Department of Economics, City University, London. [Downloadable!]
  3. Nancy J. Devlin & Paul Hansen & Paul Kind & Alan Williams, 2003. "Logical inconsistencies in survey respondents' health state valuations - a methodological challenge for estimating social tariffs," Health Economics, John Wiley & Sons, Ltd., vol. 12(7), pages 529-544. [Downloadable!]
  4. Nord, Erik, 1993. "The trade-off between severity of illness and treatment effect in cost-value analysis of health care," Health Policy, Elsevier, vol. 24(3), pages 227-238, August. [Downloadable!] (restricted)
  5. Torrance, George W., 1986. "Measurement of health state utilities for economic appraisal : A review," Journal of Health Economics, Elsevier, vol. 5(1), pages 1-30, March. [Downloadable!] (restricted)
  6. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-24, December. [Downloadable!] (restricted)
  7. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March. [Downloadable!] (restricted)
  8. Culyer, A J, 1989. "The Normative Economics of Health Care Finance and Provision," Oxford Review of Economic Policy, Oxford University Press, vol. 5(1), pages 34-58, Spring.
  9. N J Devlin & P Hansen & P Kind & A H Williams, 2000. "The health state preferences and logistical inconsistencies of New Zealanders: a tale of two tariffs," Working Papers 180chedp, Centre for Health Economics, University of York. [Downloadable!]
  10. Stefan Björk & Anna Norinder, 1999. "The weighting exercise for the Swedish version of the EuroQol," Health Economics, John Wiley & Sons, Ltd., vol. 8(2), pages 117-126.
  11. Rachel Baker & Angela Robinson, 2004. "Responses to standard gambles: are preferences 'well constructed'?," Health Economics, John Wiley & Sons, Ltd., vol. 13(1), pages 37-48. [Downloadable!]
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  1. Abellán Perpiñán, José Mª & Sánchez Martínez,Fernando I. & Martínez Pérez, Jorge E., 2007. "La medición del bienestar social relacionado con la salud/The Measurement of the Health Related Social Welfare," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 823 - 24 , Diciembre. [Downloadable!] (restricted)
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