The effect of discounting on quality of life valuation using the Time Trade-Off, CHERE Working Paper 2008/3
AbstractCost-utility analysis, combining mortality effects with health-related quality of life effects, has become the preferred method for presenting economic evaluation. It allows comparability between potential investments in different areas of health and healthcare as the outcomes are generic and designed to be applicable in multiple contexts. There are various methods for estimating health-related quality of life scores but one major approach is the use of the Time Trade-Off. Evidence has suggested that scores from this measure are relatively lower than from other measures. We argue that one possible reason for this is that the TTO method artificially deflates valuation scores because it does not take account of time preference. The extent of the deflation depends on the duration of survival offered for the health state in question, the true valuation placed on that state, and the individual?s rate of time preference. This has implications for the use of TTO valuation scores in economic evaluation, particularly when models are populated using health-related quality of life scores from sources using different methods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CHERE, University of Technology, Sydney in its series Working Papers with number 2008/3.
Date of creation: Jun 2008
Date of revision:
health related quality of life; time trade off;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
This paper has been announced in the following NEP Reports:
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.:
- Richard Norman & Paula Cronin & Rosalie Viney & Madeleine King & Deborah Street & John Brazier & Julie Ratcliffe, 2007. "Valuing EQ-5D health states: A review and analysis, CHERE Working Paper 2007/9," Working Papers 2007/9, CHERE, University of Technology, Sydney.
- Anne Spencer, 2003. "The TTO method and procedural invariance," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 655-668.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liz Chinchen).
If references are entirely missing, you can add them using this form.