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Determining the parameters in a social welfare function using stated preference data: an application to health

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  • Paul Dolan
  • Aki Tsuchiya

Abstract

One way in which economists might determine how best to balance the competing objectives of efficiency and equality is to specify a Social Welfare Function (SWF). This article looks at how the stated preferences of a sample of the general public can be used to estimate the shape of the SWF in the domain of health benefits. The results suggest that people are willing to make trade-offs between efficiency and equality and that these trade-offs are sensitive to what kind of inequalities exist and to the groups across which those inequalities exist.

Suggested Citation

  • Paul Dolan & Aki Tsuchiya, 2011. "Determining the parameters in a social welfare function using stated preference data: an application to health," Applied Economics, Taylor & Francis Journals, vol. 43(18), pages 2241-2250.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2241-2250
    DOI: 10.1080/00036840903166244
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    References listed on IDEAS

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    1. Drummond, Michael F. & Sculpher, Mark J. & Torrance, George W. & O'Brien, Bernie J. & Stoddart, Greg L., 2005. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 3, number 9780198529453.
    2. Dolan, Paul & Olsen, Jan Abel, 2002. "Distributing Health Care: Economic and ethical issues," OUP Catalogue, Oxford University Press, number 9780192632531.
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    Citations

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    Cited by:

    1. Paul Dolan & Rebecca Shaw & Aki Tsuchiya & Alan Williams, 2005. "QALY maximisation and people's preferences: a methodological review of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 197-208.
    2. Shah, Koonal K. & Tsuchiya, Aki & Wailoo, Allan J., 2015. "Valuing health at the end of life: A stated preference discrete choice experiment," Social Science & Medicine, Elsevier, vol. 124(C), pages 48-56.
    3. Matthew Robson & Miqdad Asaria & Richard Cookson & Aki Tsuchiya & Shehzad Ali, 2017. "Eliciting the Level of Health Inequality Aversion in England," Health Economics, John Wiley & Sons, Ltd., vol. 26(10), pages 1328-1334, October.
    4. Abellán Perpiñán, José Mª & Sánchez Martínez,Fernando I. & Martínez Pérez, Jorge E., 2007. "La medición del bienestar social relacionado con la salud/The Measurement of the Health Related Social Welfare," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 927-950, Diciembre.
    5. Aki Tsuchiya, 2012. "Distributional Judgements in the Context of Economic Evaluation," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 38 Edward Elgar Publishing.
    6. Attema, Arthur E. & Brouwer, Werner B.F. & l’Haridon, Olivier & Pinto, Jose Luis, 2015. "Estimating sign-dependent societal preferences for quality of life," Journal of Health Economics, Elsevier, vol. 43(C), pages 229-243.
    7. Abasolo, Ignacio & Tsuchiya, Aki, 2004. "Exploring social welfare functions and violation of monotonicity: an example from inequalities in health," Journal of Health Economics, Elsevier, vol. 23(2), pages 313-329, March.
    8. Gu, Yuanyuan & Lancsar, Emily & Ghijben, Peter & Butler, James RG & Donaldson, Cam, 2015. "Attributes and weights in health care priority setting: A systematic review of what counts and to what extent," Social Science & Medicine, Elsevier, vol. 146(C), pages 41-52.
    9. Ignacio Abásolo & Aki Tsuchiya, 2013. "Is more health always better for society? Exploring public preferences that violate monotonicity," Theory and Decision, Springer, vol. 74(4), pages 539-563, April.
    10. Josephine Borghi, 2008. "Aggregation rules for cost-benefit analysis: a health economics perspective," Health Economics, John Wiley & Sons, Ltd., vol. 17(7), pages 863-875.
    11. Zachary Michaelson, 2015. "Biases in choices about fairness: Psychology and economic inequality," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 10(2), pages 198-203, March.
    12. Cookson, Richard & Ali, Shehzad & Tsuchiya, Aki & Asaria, Miqdad, 2018. "E‐learning and health inequality aversion: a questionnaire experiment," LSE Research Online Documents on Economics 89393, London School of Economics and Political Science, LSE Library.
    13. Meliyanni Johar & Denzil G. Fiebig & Marion Haas & Rosalie Viney, 2013. "Using repeated choice experiments to evaluate the impact of policy changes on cervical screening," Applied Economics, Taylor & Francis Journals, vol. 45(14), pages 1845-1855, May.
    14. Mæstad, Ottar & Norheim, Ole Frithjof, 2012. "A universal preference for equality in health? Reasons to reconsider properties of applied social welfare functions," Social Science & Medicine, Elsevier, vol. 75(10), pages 1836-1843.

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