IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v14y2005i1p93-99.html
   My bibliography  Save this article

Comparing costing results in across country economic evaluations: the use of technology specific purchasing power parities

Author

Listed:
  • Sarah Wordsworth
  • Anne Ludbrook

Abstract

The number of economic evaluations conducted on a multinational basis is increasing. Therefore, techniques are required to compare the results of such studies in a meaningful manner. This paper explores different approaches to comparing across country cost data applied to a European study of dialysis therapy for end‐stage renal disease. A price and volume index is created at the level of the individual health care technology and compared to an exchange rate conversion and published purchasing power parities (PPPs). Both exchange rate and PPP conversions when published rates are used fail to accurately reflect the true resource use of the applied health care example. These differences can be related to specific issues of input mix and price variation. Alternatively, the use of technology specific PPPs provided a more robust approach for international comparisons and also have the potential for use in multi‐centre economic evaluations within the same country. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Sarah Wordsworth & Anne Ludbrook, 2005. "Comparing costing results in across country economic evaluations: the use of technology specific purchasing power parities," Health Economics, John Wiley & Sons, Ltd., vol. 14(1), pages 93-99, January.
    • Handle: RePEc:wly:hlthec:v:14:y:2005:i:1:p:93-99
    DOI: 10.1002/hec.913
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.913
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hec.913?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
    2. Koopmanschap, Marc A. & Touw, Karien C. R. & Rutten, Frans F. H., 2001. "Analysis of costs and cost-effectiveness in multinational trials," Health Policy, Elsevier, vol. 58(2), pages 175-186, November.
    3. Gerdtham, Ulf-G. & Jonsson, Bengt, 1991. "Conversion factor instability in international comparisons of health care expenditure," Journal of Health Economics, Elsevier, vol. 10(2), pages 227-234, July.
    4. Kevin Schulman & Jennifer Burke & Michael Drummond & Linda Davies & Per Carlsson & Jans Gruger & Anthony Harris & Carlo Lucioni & Ramon Gisbert & Ted Llana & Eric Tom & Bernard Bloom & Richard Willke , 1998. "Resource costing for multinational neurologic clinical trials: methods and results," Health Economics, John Wiley & Sons, Ltd., vol. 7(7), pages 629-638, November.
    5. Richard J. Willke & Henry A. Glick & Daniel Polsky & Kevin Schulman, 1998. "Estimating country‐specific cost‐effectiveness from multinational clinical trials," Health Economics, John Wiley & Sons, Ltd., vol. 7(6), pages 481-493, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Avi Dor & Mark V. Pauly & Margaret A. Eichleay & Philip J. Held, 2007. "End-stage Renal Disease and Economic Incentives: The International Study of Health Care Organization and Financing," NBER Working Papers 13125, National Bureau of Economic Research, Inc.
    2. Richard Grieve & John Cairns & Simon G. Thompson, 2010. "Improving costing methods in multicentre economic evaluation: the use of multiple imputation for unit costs," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 939-954, August.
    3. Jonas Schreyögg, 2008. "A micro‐costing approach to estimating hospital costs for appendectomy in a Cross‐European context," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages 59-69, January.
    4. Aline Gauthier & Andrea Manca & Susan Anton, 2009. "Bayesian Modelling of Healthcare Resource Use in Multinational Randomized Clinical Trials," PharmacoEconomics, Springer, vol. 27(12), pages 1017-1029, December.
    5. Just, Paul Michael & Riella, Miguel Carlos & Tschosik, Elizabeth Ann & Noe, Leslie Lyle & Bhattacharyya, Samir Kumar & de Charro, Frank, 2008. "Economic evaluations of dialysis treatment modalities," Health Policy, Elsevier, vol. 86(2-3), pages 163-180, May.
    6. David Epstein & Anne Mason & Andrea Manca, 2008. "The hospital costs of care for stroke in nine European countries," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages 21-31, January.
    7. Michael Harvey & Michael Gaies & Lisa Prosser, 2015. "US and International In-Hospital Costs of Extracorporeal Membrane Oxygenation: a Systematic Review," Applied Health Economics and Health Policy, Springer, vol. 13(4), pages 341-357, August.
    8. Jonas Schreyögg & Oliver Tiemann & Tom Stargardt & Reinhard Busse, 2008. "Cross‐country comparisons of costs: the use of episode‐specific transitive purchasing power parities with standardised cost categories," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages 95-103, January.
    9. Avi Dor & Mark Pauly & Margaret Eichleay & Philip Held, 2007. "End-stage renal disease and economic incentives: the International Study of Health Care Organization and Financing (ISHCOF)," International Journal of Health Economics and Management, Springer, vol. 7(2), pages 73-111, September.
    10. Francette Koechlin & Paul Konijn & Luca Lorenzoni & Paul Schreyer, 2017. "Comparing Hospitals and Health Prices and Volumes Across Countries: A New Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(1), pages 43-64, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonas Schreyögg & Oliver Tiemann & Tom Stargardt & Reinhard Busse, 2008. "Cross‐country comparisons of costs: the use of episode‐specific transitive purchasing power parities with standardised cost categories," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages 95-103, January.
    2. Sarah Wordsworth & Anne Ludbrook & Fergus Caskey & Alison Macleod, 2005. "Collecting unit cost data in multicentre studies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(1), pages 38-44, March.
    3. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
    4. Mujaheed Shaikh & Afschin Gandjour, 2019. "Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 101-122, January.
    5. Helmut Herwartz & Bernd Theilen, 2003. "The determinants of health care expenditure: testing pooling restrictions in small samples," Health Economics, John Wiley & Sons, Ltd., vol. 12(2), pages 113-124, February.
    6. Tom Jefferson & Miranda Mugford & Alastair Gray & Vittorio Demicheli, 1996. "An exercise on the feasibility of carrying out secondary economic analyses," Health Economics, John Wiley & Sons, Ltd., vol. 5(2), pages 155-165, March.
    7. Joan Costa-Font & Marin Gemmill & Gloria Rubert, 2008. "Re-visiting the Health Care Luxury Good Hypothesis: Aggregation, Precision, and Publication Biases?," Working Papers in Economics 197, Universitat de Barcelona. Espai de Recerca en Economia.
    8. Mark Berger & Jodi Messer, 2002. "Public financing of health expenditures, insurance, and health outcomes," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2105-2113.
    9. Carlos Murillo & Cyrille Piatecki & Marc Saez, 1993. "Health care expenditure and income in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 2(2), pages 127-138, July.
    10. Hartwig, Jochen, 2008. "What drives health care expenditure?--Baumol's model of 'unbalanced growth' revisited," Journal of Health Economics, Elsevier, vol. 27(3), pages 603-623, May.
    11. Potrafke, Niklas, 2010. "The growth of public health expenditures in OECD countries: Do government ideology and electoral motives matter?," Journal of Health Economics, Elsevier, vol. 29(6), pages 797-810, December.
    12. Marc Saez & Carles Murillo, 1994. "Shared ‘features’ in prices: Income and price elasticities for health care expenditures," Health Economics, John Wiley & Sons, Ltd., vol. 3(4), pages 267-279, July.
    13. Berta Rivera & Luis Currais, 2003. "The effect of health investment on growth: A causality analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 9(4), pages 312-323, November.
    14. Andrew R. Willan & Eleanor M. Pinto & Bernie J. O'Brien & Padma Kaul & Ron Goeree & Larry Lynd & Paul W. Armstrong, 2005. "Country specific cost comparisons from multinational clinical trials using empirical Bayesian shrinkage estimation: the Canadian ASSENT‐3 economic analysis," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 327-338, April.
    15. Xiaocang Xu & Haoran Yang & Chang Li, 2022. "Theoretical Model and Actual Characteristics of Air Pollution Affecting Health Cost: A Review," IJERPH, MDPI, vol. 19(6), pages 1-14, March.
    16. Mahlich Jörg & Sindern Jörn & Suppliet Moritz, 2015. "Vergleichbarkeit internationaler Arzneimittelpreise," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(2), pages 164-172, June.
    17. Christopher J.L. Murray & David B. Evans & Arnab Acharya & Rob M.P.M. Baltussen, 2000. "Development of WHO guidelines on generalized cost‐effectiveness analysis," Health Economics, John Wiley & Sons, Ltd., vol. 9(3), pages 235-251, April.
    18. Hansen, Paul & King, Alan, 1996. "The determinants of health care expenditure: A cointegration approach," Journal of Health Economics, Elsevier, vol. 15(1), pages 127-137, February.
    19. Blomqvist, A. G. & Carter, R. A. L., 1997. "Is health care really a luxury?," Journal of Health Economics, Elsevier, vol. 16(2), pages 207-229, April.
    20. Tarricone, Rosanna, 2006. "Cost-of-illness analysis: What room in health economics?," Health Policy, Elsevier, vol. 77(1), pages 51-63, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:14:y:2005:i:1:p:93-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.