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Exponential Health Utility: A Characterization and Comments on a Paper by Happich and Mühlbacher

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Author Info
Lars Peter Østerdal (Institute of Economics, University of Copenhagen)
Abstract

In a recent paper Happich and Mühlbacher [Eur J Health Econom (2003) 4:292-294] proposed an axiom of constant absolute trade-off in life years, and studied the family of QALY models satisfying this axiom under expected utility and mutual utility independence between life years and health state. In this paper, we provide a complete characterization of the above-mentioned family of QALY models. This family should not be mistaken for the family of multiplicative expo-nential QALY models; in particular, it violates the zero-condition.

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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 04-04.

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Length: 7 pages
Date of creation: Feb 2004
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Handle: RePEc:kud:kuiedp:0404

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D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
I10 - Health, Education, and Welfare - - Health - - - General

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