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Trying to estimate a monetary value for the QALY

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Author Info

  • Jose Luis Pinto Prades

    ()
    (Department of Economics, Universidad Pablo de Olavide)

  • Graham Loomes

    ()
    (Department of Economics, University of East Anglia)

  • Raul Brey

    ()
    (Department of Economics, Universidad Pablo de Olavide)

Abstract

In this paper we study the possibility of estimating a monetary value for the QALY. Using two different surveys of the Spanish population (n=900), we try to establish whether willingness to pay (WTP) is (almost) proportional to the health gains measured in QALYs. We also explore whether subjects’ responses are prone to any biases. We find that the monetary value of the QALY is higher the smaller the health gain, pointing to insensitivity in WTP. We also find two clear biases. One is the existence of sequencing effects. The other is the insensitivity of WTP to the duration of the period of payment. All these effects translate into a large variation in estimates of the monetary value of the QALY. We conclude that in order to be able to obtain consistent and stable estimates, we should try to understand better the causes of these problems with a view to developing ways of mitigating them.

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File URL: http://www.upo.es/serv/bib/wps/econ0809.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 08.09.

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Length: 25 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:pab:wpaper:08.09

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Keywords: QALYs; willingness to pay; biases.;

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References

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  15. Karen Blumenschein & GlennC. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 114-137, 01.
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Citations

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Cited by:
  1. Attema, Arthur & Brouwer, Werner & l'Haridon, Olivier, 2013. "Prospect theory in the health domain: a quantitative assessment," MPRA Paper 44207, University Library of Munich, Germany.
  2. Robinson, Angela & Gyrd-Hansen, Dorte & Bacon, Philomena & Baker, Rachel & Pennington, Mark & Donaldson, Cam, 2013. "Estimating a WTP-based value of a QALY: The ‘chained’ approach," Social Science & Medicine, Elsevier, vol. 92(C), pages 92-104.
  3. Manuel F. Montesino-Semper & Jesús M. Jiménez-Calvo & Juan M. Cabasés & Eduardo Sánchez-Iriso & Antonio Hualde-Alfaro & Diego García-García, 2013. "Cost-effectiveness analysis of the surgical treatment of female urinary incontinence using slings," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 1303, Departamento de Economía - Universidad Pública de Navarra.
  4. Andersson, Henrik & Hammitt, James & Sundström, Kristian, 2011. "Willingness to pay and QALYs: What can we learn about valuing foodborne risk?," LERNA Working Papers 11.21.355, LERNA, University of Toulouse.
  5. Hammitt, James & Haninger, Kevin, 2011. "Valuing Morbidity Risk: Willingness to Pay per Quality-Adjusted Life Year," LERNA Working Papers 11.09.343, LERNA, University of Toulouse.
  6. Tilling, C & Krol, M & Tsuchiya, A & Brazier, J & van Exel, J & Brouwer, W, 2009. "Measuring the value of life: exploring a new method for deriving the monetary value of a QALY," MPRA Paper 29911, University Library of Munich, Germany.
  7. Mikel Berdud & Juan M. Cabasés Hita & Jorge Nieto, 2012. "Motivational Capital and Incentives in Health Care Organisations," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 1209, Departamento de Economía - Universidad Pública de Navarra.
  8. Bobinac, Ana & van Exel, N. Job A. & Rutten, Frans F.H. & Brouwer, Werner B.F., 2012. "GET MORE, PAY MORE? An elaborate test of construct validity of willingness to pay per QALY estimates obtained through contingent valuation," Journal of Health Economics, Elsevier, vol. 31(1), pages 158-168.
  9. Svensson, Mikael & Hultkrantz, Lars, 2012. "The Willingness to Pay for a QALY - Results based on value of statistical life estimates in Sweden," Karlstad University Working Papers in Economics 2, Department of Economics, Karlstad University.
  10. Powdthavee, Nattavudh & van den Berg, Bernard, 2011. "Putting Different Price Tags on the Same Health Condition: Re-evaluating the Well-Being Valuation Approach," IZA Discussion Papers 5493, Institute for the Study of Labor (IZA).
  11. Arthur E. Attema & Werner B.F. Brouwer & Olivier l'Haridon, 2013. "A quantification of prospect theory in the health domain," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201321, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  12. Miraldo, M & Galizzi, M & Stavropoulou, C, 2013. "In sickness but not in wealth: Field evidence on patients? risk preferences in the financial and health domain," Working Papers 12579, Imperial College, London, Imperial College Business School.

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