Willingness to Pay for Hormone Replacement Therapy
AbstractThis study addresses the question of willingness to pay (WTP) for hormone replacement therapy (HRT) in order to alleviate menopayusal symptoms. A utility model is specified where the individual obtains utility from consumption of goods and health. The purchase of a treatment is represented as a shift in the health production function during the treatment period. The mean WTP for the HRT is estimated using a parametric and a non-parametric method. The mean WTP based on these two methods is similar in both cases and amounts to about SEK 40,000 per year. Further, it is shown that the mean WTP is above the mean treatment costs of HRT. Finally, the implied WTP per gained quality adjusted life year is estimated at about SEK 120,000 and SEK 160,000 based on the rating scale (RS) and time trade-off (TTO) methods, respectively.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 214.
Length: 27 pages
Date of creation: 18 Dec 1997
Date of revision:
Publication status: Forthcoming in Journal of Health Economics.
Contact details of provider:
Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
Web page: http://www.hhs.se/
More information through EDIRC
Hormone replacement therapy; menopausal symptoms; willingness to pay.;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- I10 - Health, Education, and Welfare - - Health - - - General
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-11-05 (All new papers)
- NEP-ENV-1998-11-05 (Environmental Economics)
- NEP-HEA-1998-11-05 (Health Economics)
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