IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v15y2006i12p1295-1310.html
   My bibliography  Save this article

A taxonomy of model structures for economic evaluation of health technologies

Author

Listed:
  • Alan Brennan
  • Stephen E. Chick
  • Ruth Davies

Abstract

Models for the economic evaluation of health technologies provide valuable information to decision makers. The choice of model structure is rarely discussed in published studies and can affect the results produced. Many papers describe good modelling practice, but few describe how to choose from the many types of available models. This paper develops a new taxonomy of model structures. The horizontal axis of the taxonomy describes assumptions about the role of expected values, randomness, the heterogeneity of entities, and the degree of non‐Markovian structure. Commonly used aggregate models, including decision trees and Markov models require large population numbers, homogeneous sub‐groups and linear interactions. Individual models are more flexible, but may require replications with different random numbers to estimate expected values. The vertical axis of the taxonomy describes potential interactions between the individual actors, as well as how the interactions occur through time. Models using interactions, such as system dynamics, some Markov models, and discrete event simulation are fairly uncommon in the health economics but are necessary for modelling infectious diseases and systems with constrained resources. The paper provides guidance for choosing a model, based on key requirements, including output requirements, the population size, and system complexity. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Alan Brennan & Stephen E. Chick & Ruth Davies, 2006. "A taxonomy of model structures for economic evaluation of health technologies," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1295-1310, December.
  • Handle: RePEc:wly:hlthec:v:15:y:2006:i:12:p:1295-1310
    DOI: 10.1002/hec.1148
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.1148
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Davies, Ruth & Roderick, Paul & Raftery, James, 2003. "The evaluation of disease prevention and treatment using simulation models," European Journal of Operational Research, Elsevier, vol. 150(1), pages 53-66, October.
    2. Karl Claxton & Mark Sculpher & Chris McCabe & Andrew Briggs & Ron Akehurst & Martin Buxton & John Brazier & Tony O'Hagan, 2005. "Probabilistic sensitivity analysis for NICE technology assessment: not an optional extra," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 339-347, April.
    Full references (including those not matched with items on IDEAS)

    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. Anthony O'Hagan & Matt Stevenson & Jason Madan, 2007. "Monte Carlo probabilistic sensitivity analysis for patient level simulation models: efficient estimation of mean and variance using ANOVA," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1009-1023, October.
    2. Anthony O'Hagan & Matt Stevenson & Jason Madan, 2007. "Monte Carlo probabilistic sensitivity analysis for patient level simulation models: efficient estimation of mean and variance using ANOVA," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1009-1023.
    3. A. E. Ades & Karl Claxton & Mark Sculpher, 2006. "Evidence synthesis, parameter correlation and probabilistic sensitivity analysis," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 373-381, April.
    4. Dongzhe Hong & Lei Si & Minghuan Jiang & Hui Shao & Wai-kit Ming & Yingnan Zhao & Yan Li & Lizheng Shi, 2019. "Cost Effectiveness of Sodium-Glucose Cotransporter-2 (SGLT2) Inhibitors, Glucagon-Like Peptide-1 (GLP-1) Receptor Agonists, and Dipeptidyl Peptidase-4 (DPP-4) Inhibitors: A Systematic Review," PharmacoEconomics, Springer, vol. 37(6), pages 777-818, June.
    5. Pedram Sendi & Huldrych F Günthard & Mathew Simcock & Bruno Ledergerber & Jörg Schüpbach & Manuel Battegay & for the Swiss HIV Cohort Study, 2007. "Cost-Effectiveness of Genotypic Antiretroviral Resistance Testing in HIV-Infected Patients with Treatment Failure," PLOS ONE, Public Library of Science, vol. 2(1), pages 1-8, January.
    6. McKenna, Claire & Chalabi, Zaid & Epstein, David & Claxton, Karl, 2010. "Budgetary policies and available actions: A generalisation of decision rules for allocation and research decisions," Journal of Health Economics, Elsevier, vol. 29(1), pages 170-181, January.
    7. Mattias Ekman & Peter Lindgren & Carolin Miltenburger & Genevieve Meier & Julie Locklear & Mary Chatterton, 2012. "Cost Effectiveness of Quetiapine in Patients with Acute Bipolar Depression and in Maintenance Treatment after an Acute Depressive Episode," PharmacoEconomics, Springer, vol. 30(6), pages 513-530, June.
    8. Emma McIntosh, 2006. "Using Discrete Choice Experiments within a Cost-Benefit Analysis Framework," PharmacoEconomics, Springer, vol. 24(9), pages 855-868, September.
    9. John Hutton, 2012. "‘Health Economics’ and the evolution of economic evaluation of health technologies," Health Economics, John Wiley & Sons, Ltd., vol. 21(1), pages 13-18, January.
    10. Olivier Ethgen & Baudouin Standaert, 2012. "Population–versus Cohort–Based Modelling Approaches," PharmacoEconomics, Springer, vol. 30(3), pages 171-181, March.
    11. Laura Bojke & Karl Claxton & Stephen Palmer & Mark Sculpher, 2006. "Defining and characterising structural uncertainty in decision analytic models," Working Papers 009cherp, Centre for Health Economics, University of York.
    12. K Cooper & S C Brailsford & R Davies, 2007. "Choice of modelling technique for evaluating health care interventions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(2), pages 168-176, February.
    13. Nicholas Graves & Mary Courtney & Helen Edwards & Anne Chang & Anthony Parker & Kathleen Finlayson, 2009. "Cost-Effectiveness of an Intervention to Reduce Emergency Re-Admissions to Hospital among Older Patients," PLOS ONE, Public Library of Science, vol. 4(10), pages 1-9, October.
    14. Anthony Newall & Mark Jit & Philippe Beutels, 2012. "Economic Evaluations of Childhood Influenza Vaccination," PharmacoEconomics, Springer, vol. 30(8), pages 647-660, August.
    15. Christopher McCabe & Giovanni Tramonti & Andrew Sutton & Peter Hall & Mike Paulden, 2021. "Probabilistic One-Way Sensitivity Analysis with Multiple Comparators: The Conditional Net Benefit Frontier," PharmacoEconomics, Springer, vol. 39(1), pages 19-24, January.
    16. Nicholas Graves & Katie Page & Elizabeth Martin & David Brain & Lisa Hall & Megan Campbell & Naomi Fulop & Nerina Jimmeison & Katherine White & David Paterson & Adrian G Barnett, 2016. "Cost-Effectiveness of a National Initiative to Improve Hand Hygiene Compliance Using the Outcome of Healthcare Associated Staphylococcus aureus Bacteraemia," PLOS ONE, Public Library of Science, vol. 11(2), pages 1-17, February.
    17. T. I. Armina Padmasawitri & Sarah Maria Saragih & Gerardus W. Frederix & Olaf Klungel & Anke M. Hövels, 2020. "Managing Uncertainties Due to Limited Evidence in Economic Evaluations of Novel Anti-Tuberculosis Regimens: A Systematic Review," PharmacoEconomics - Open, Springer, vol. 4(2), pages 223-233, June.
    18. Mehdi Najafzadeh & Jorge A. Garces & Alejandra Maciel, 2017. "Economic Evaluation of Implementing a Novel Pharmacogenomic Test (IDgenetix®) to Guide Treatment of Patients with Depression and/or Anxiety," PharmacoEconomics, Springer, vol. 35(12), pages 1297-1310, December.
    19. Torbjørn Wisløff & Gunhild Hagen & Vida Hamidi & Espen Movik & Marianne Klemp & Jan Olsen, 2014. "Estimating QALY Gains in Applied Studies: A Review of Cost-Utility Analyses Published in 2010," PharmacoEconomics, Springer, vol. 32(4), pages 367-375, April.
    20. Fernando Antonanzas & Benoit Rive & Josep Badenas & Susana Gomez-Lus & Chantal Guilhaume, 2006. "Cost-effectiveness of memantine in community-based Alzheimer’s disease patients: an adaptation in Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 7(2), pages 137-144, 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:15:y:2006:i:12:p:1295-1310. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.