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

  • Sarah Wordsworth

    (Health Economics Research Centre, University of Oxford, Oxford, UK)

  • Anne Ludbrook

    (Health Economics Research Unit, University of Aberdeen, Aberdeen, UK)

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    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.

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    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 14 (2005)
    Issue (Month): 1 ()
    Pages: 93-99

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    Handle: RePEc:wly:hlthec:v:14:y:2005:i:1:p:93-99
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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Ron Goeree & Amiram Gafni & Mary Hannah & Terri Myhr & Gordon Blackhouse, 1999. "Hospital Selection for Unit Cost Estimates in Multicentre Economic Evaluations: Does the Choice of Hospitals Make a Difference?," PharmacoEconomics, Springer Healthcare | Adis, vol. 15(6), pages 561-572.
    6. 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.
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