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Impact of Complementarity and Heterogeneity on Health Related Utility of Life

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  • Michał Jakubczyk

    (Institute of Econometrics, Warsaw School of Economics)

Abstract

This study aims at identifying determinants of health related quality of life in Poland, and in particular at verifying whether health domains are complements or substitutes and what the impact of heterogeneity of population on the health state valuation is. The paper uses data in panel structure coming from a survey conducted in Poland and consisting of 6700 valuations (after data cleaning) of EQ-5D health states with time trade-off method. Several econometric models are built in order to detect the impact of complementarity and heterogeneity. Random effects models as well as random parameters models estimated using Bayesian approach are used. The results show that health domains are complementary goods. Especially the lack of pain/discomfort is a complement to other health domains. Demographic factors influence how health state change impacts utility. These factors encompass sex, education, respondent's health state and even belief in life after death.

Suggested Citation

  • Michał Jakubczyk, 2009. "Impact of Complementarity and Heterogeneity on Health Related Utility of Life," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 1(2), pages 139-156, November.
    • Handle: RePEc:psc:journl:v:1:y:2009:i:2:p:139-156
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    References listed on IDEAS

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    1. Brazier, John & Ratcliffe, Julie & Salomon, Joshua & Tsuchiya, Aki, 2016. "Measuring and Valuing Health Benefits for Economic Evaluation," OUP Catalogue, Oxford University Press, edition 2, number 9780198725923, December.
    2. Aki Tsuchiya & Shunya Ikeda & Naoki Ikegami & Shuzo Nishimura & Ikuro Sakai & Takashi Fukuda & Chisato Hamashima & Akinori Hisashige & Makoto Tamura, 2002. "Estimating an EQ‐5D population value set: the case of Japan," Health Economics, John Wiley & Sons, Ltd., vol. 11(4), pages 341-353, June.
    3. Joseph S. Pliskin & Donald S. Shepard & Milton C. Weinstein, 1980. "Utility Functions for Life Years and Health Status," Operations Research, INFORMS, vol. 28(1), pages 206-224, February.
    4. Bleichrodt, Han & Wakker, Peter & Johannesson, Magnus, 1997. "Characterizing QALYs by Risk Neutrality," Journal of Risk and Uncertainty, Springer, vol. 15(2), pages 107-114, November.
    5. Dolan, Paul & Stalmeier, Peep, 2003. "The validity of time trade-off values in calculating QALYs: constant proportional time trade-off versus the proportional heuristic," Journal of Health Economics, Elsevier, vol. 22(3), pages 445-458, May.
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    More about this item

    Keywords

    health related quality of life; QALY; EQ-5D; complementarity; heterogeneity;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I10 - Health, Education, and Welfare - - Health - - - General

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