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On the possibility of a bridge between CBA and CEA: comments on a paper by Dolan and Edlin

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  • Hansen, B. O.
  • Hougaard, J. L.
  • Keiding, H.
  • Osterdal, L. P.

Abstract

In a recent work by Dolan and Edlin it is concluded that no link can be established between cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA). However, the conclusion seems to depend rather heavily on what is understood by a link between CBA and CEA as well as on the exact meaning of the latter two terms. We argue that there is at least one approach to CBA and CEA in which the two are very intimately linked. On the other hand, the limitations in the access to preference information has consequences for the kind of questions that can be meaningfully addresses in both CBA and CEA.
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Suggested Citation

  • Hansen, B. O. & Hougaard, J. L. & Keiding, H. & Osterdal, L. P., 2004. "On the possibility of a bridge between CBA and CEA: comments on a paper by Dolan and Edlin," Journal of Health Economics, Elsevier, vol. 23(5), pages 887-898, September.
    • Handle: RePEc:eee:jhecon:v:23:y:2004:i:5:p:887-898
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    References listed on IDEAS

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    1. Bleichrodt, Han & Quiggin, John, 1999. "Life-cycle preferences over consumption and health: when is cost-effectiveness analysis equivalent to cost-benefit analysis?," Journal of Health Economics, Elsevier, vol. 18(6), pages 681-708, December.
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    3. Dolan, Paul & Edlin, Richard, 2002. "Is it really possible to build a bridge between cost-benefit analysis and cost-effectiveness analysis?," Journal of Health Economics, Elsevier, vol. 21(5), pages 827-843, September.
    4. Garber, Alan M. & Phelps, Charles E., 1997. "Economic foundations of cost-effectiveness analysis," Journal of Health Economics, Elsevier, vol. 16(1), pages 1-31, February.
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    6. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    7. Brouwer, Werner B. F. & Koopmanschap, Marc A., 2000. "On the economic foundations of CEA. Ladies and gentlemen, take your positions!," Journal of Health Economics, Elsevier, vol. 19(4), pages 439-459, July.
    8. Pratt, John W & Zeckhauser, Richard J, 1996. "Willingness to Pay and the Distribution of Risk and Wealth," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 747-763, August.
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    Cited by:

    1. David Canning, 2013. "Axiomatic Foundations For Cost‐Effectiveness Analysis," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1405-1416, December.
    2. Don Kenkel, 2006. "WTP- and QALY-Based Approaches to Valuing Health for Policy: Common Ground and Disputed Territory," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(3), pages 419-437, July.
    3. Hougaard, Jens Leth & Keiding, Hans, 2005. "On the aggregation of health status measures," Journal of Health Economics, Elsevier, vol. 24(6), pages 1154-1173, November.
    4. Edlin, Richard, 2004. "Anti-social welfare functions: a reply to Hansen et al," Journal of Health Economics, Elsevier, vol. 23(5), pages 899-905, September.

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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