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Eliciting several willingness to pay in a single contingent valuation survey: application to health care

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  • Stéphane Luchini
  • Christel Protière
  • Jean-Paul Moatti

Abstract

The usual implementation of contingent valuation (CV), in the context of priorities setting for allocation of public funds in health care, is to develop as many surveys as there are programmes, i.e. to perform separate evaluations (SE). In the EuroWill project, three health programmes (for heart disease, breast cancer and a service of helicopter ambulance) were however simultaneously evaluated, i.e. a joint evaluation (JE) was performed. The paper examines the issue of the econometric techniques that should be used to estimate WTP values obtained in the context of JE by comparing the application of independent OLS regressions for each programme versus simultaneous estimations using seemingly unrelated regressions (SUR) on data of the French EuroWill survey. It shows that separate estimations may lead to misspecifications because they cannot take into account that JE exogenously provides a reference structure to the respondent which affects the estimates of WTP for each programme. Therefore, the potential advantage of JE versus SE as an elicitation technique in CV studies applied to health care (to better control the referents used by respondents for evaluating different programmes) only holds if simultaneous rather than independent techniques are used in the estimation of WTPs. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Stéphane Luchini & Christel Protière & Jean-Paul Moatti, 2003. "Eliciting several willingness to pay in a single contingent valuation survey: application to health care," Health Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 51-64.
  • Handle: RePEc:wly:hlthec:v:12:y:2003:i:1:p:51-64
    DOI: 10.1002/hec.703
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    Cited by:

    1. Karine Lamiraud & Robert Oxoby & Cam Donaldson, 2016. "Incremental willingness to pay: a theoretical and empirical exposition," Theory and Decision, Springer, vol. 80(1), pages 101-123, January.
    2. Rinaldo Brau & Matteo Lippi Bruni & Anna Maria Pinna, 2010. "Public versus private demand for covering long-term care expenditures," Applied Economics, Taylor & Francis Journals, vol. 42(28), pages 3651-3668.
    3. Pieter Serneels & Abigail Barr, 2005. "Understanding Geographical Imbalances in the Health Workforce," Economics Series Working Papers GPRG-WPS-018, University of Oxford, Department of Economics.
    4. Marc Fleurbaey & Stéphane Luchini & Erik Schokkaert & Carine Van de Voorde, 2012. "Évaluation des politiques de santé : pour une prise en compte équitable des intérêts des populations," Économie et Statistique, Programme National Persée, vol. 455(1), pages 11-36.
    5. Thomas Hammerschmidt & Hans-Peter Zeitler & Reiner Leidl, 2004. "A utility-theoretic approach to the aggregation of willingness to pay measured in decomposed scenarios: development and empirical test," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 345-361.
    6. Leung, Gabriel Matthew & Yeung, Raymond Yue Ting & Wong, Irene Oi Ling & Castan-Cameo, Susana & Johnston, Janice Mary, 2006. "Time costs of waiting, doctor-shopping and private-public sector imbalance: Microdata evidence from Hong Kong," Health Policy, Elsevier, vol. 76(1), pages 1-12, March.
    7. Karine Lamiraud & Robert Oxoby & Cam Donaldson, 2015. "Incremental willingness to pay," Working Papers hal-01205938, HAL.
    8. Serneels, Pieter & Lindelow, Magnus & Garcia-Montalvo, Jose & Barr, Abigail, 2005. "For public service or money : understanding geographical imbalances in the health workforce," Policy Research Working Paper Series 3686, The World Bank.
    9. Lamiraud, Karine & Oxoby, Robert & Donaldson, Cam, 2016. "Reference Dependence and Incremental WTP," ESSEC Working Papers WP1609, ESSEC Research Center, ESSEC Business School.
    10. Raymond Y.T. Yeung & Gabriel M. Leung & Sarah M. McGhee & Janice M. Johnston, 2004. "Waiting time and doctor shopping in a mixed medical economy," Health Economics, John Wiley & Sons, Ltd., vol. 13(11), pages 1137-1144.
    11. Pierre-Alexandre Mahieu & Romain Craste & Bengt Kriström & Pere Riera, 2014. "Non-market valuation in France: An overview of the research activity," Working Papers hal-01087365, HAL.
    12. George Houtven & Melonie Sullivan & Chris Dockins, 2008. "Cancer premiums and latency effects: A risk tradeoff approach for valuing reductions in fatal cancer risks," Journal of Risk and Uncertainty, Springer, vol. 36(2), pages 179-199, April.
    13. O'Shea, Eamon & Gannon, Brenda & Kennelly, Brendan, 2008. "Eliciting preferences for resource allocation in mental health care in Ireland," Health Policy, Elsevier, vol. 88(2-3), pages 359-370, December.
    14. Pieter Serneels & Magnus Lindelow & José Garcia Montalvo & Abigail Barr, 2006. "For public service or money: Understanding geographical imbalances in the health workforce in Ethiopia," Economics Working Papers 989, Department of Economics and Business, Universitat Pompeu Fabra.
    15. Mwiti, Florine & Okello, Julius J. & Munei, Kimpei, 2015. "Are Farmers Willing to Pay for Quality Planting Materials of Clonally Propagated Biofortified Crops? The Case of Orange-Fleshed Sweetpotatoe in Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 212519, International Association of Agricultural Economists.
    16. Mataria, Awad & Donaldson, Cam & Luchini, Stephane & Moatti, Jean-Paul, 2004. "A stated preference approach to assessing health care-quality improvements in Palestine: from theoretical validity to policy implications," Journal of Health Economics, Elsevier, vol. 23(6), pages 1285-1311, November.

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