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Existence and Magnitude of Health-related Externalities: Evidence from a Choice Experiment

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  • Jeremiah Hurley

    ()
    (Department of Economics, Centre for Health Economics and Policy Analysis, McMaster University, Department of Clinical Epidemiology and Biostatistics, McMaster University)

  • Emmanouil Mentzakis

    ()
    (Department of Economics, Centre for Health Economics and Policy Analysis, McMaster University)

Abstract

Health-related external benefits are of potentially large importance for public policy. This paper investigates health-related external benefits using a stated-preference discrete-choice experiment framed in a health care context and including choice scenarios defined by six attributes related to arecipient and the recipient's condition: communicability, severity, medical necessity, relationship to respondent, location, and contribution requested. Subjects also completed a set of own-treatment scenarios and a values-orientation instrument. We find evidence of substantial health-related external benefits that vary as expected with the scenario attributes and subjects' value orientations. The results are consistent with a number of hypotheses offered by the general theoretical analysis of health-related externalities and the analysis of externalities specific to health care

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Paper provided by Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada in its series Centre for Health Economics and Policy Analysis Working Paper Series with number 2011-01.

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Date of creation: 2011
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Handle: RePEc:hpa:wpaper:201101

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Cited by:
  1. Mario Andres Fernandez & Douglas Shaw, 2013. "Willingness to pay for intervention policies related to HIV/AIDS: a theoretical framework with endogenous risk, perceived effectiveness and altruism," Economics Bulletin, AccessEcon, vol. 33(2), pages 1457-1467.
  2. Aleksandra Gajic & David Cameron & Jeremiah Hurley, 2012. "The cost-effectiveness of cash versus lottery incentives for a web-based, stated-preference community survey," The European Journal of Health Economics, Springer, vol. 13(6), pages 789-799, December.

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