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

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  • Jeremiah Hurley
  • Emmanouil Mentzakis

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 de ned by six attributes related to the a recipient and the recipient's condition: communicability, severity, medical necessity, relationship to respondent, location, and amount of 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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File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2011-01.pdf
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Bibliographic Info

Paper provided by McMaster University in its series Department of Economics Working Papers with number 2011-01.

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Length: 52 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:mcm:deptwp:2011-01

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Keywords: externalities; altruism; health care financing; program evaluation;

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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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