IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v6y1997i1p83-85.html
   My bibliography  Save this article

The Adjustment of Cost Measurement to Account for Learning

Author

Listed:
  • Lars K. Langkilde
  • Jes Søgaard

Abstract

This note discusses the adjustment of cost measurement to account for learning. By learning is meant improvements in productive efficiency resulting from use of a (health) technology in routine practice. A recently proposed method is shown to be potentially misleading. Alternatively, it is suggested that the total cost is decomposed in treatment cost and learning cost. Furthermore, if there is uncertainty about the long‐run unit cost, learning will reveal the true cost. A method to adjust the learning cost for the value of this information is illustrated. © 1997 by John Wiley & Sons, Ltd.

Suggested Citation

  • Lars K. Langkilde & Jes Søgaard, 1997. "The Adjustment of Cost Measurement to Account for Learning," Health Economics, John Wiley & Sons, Ltd., vol. 6(1), pages 83-85, January.
    • Handle: RePEc:wly:hlthec:v:6:y:1997:i:1:p:83-85
    DOI: 10.1002/(SICI)1099-1050(199701)6:1<83::AID-HEC248>3.0.CO;2-U
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/(SICI)1099-1050(199701)6:13.0.CO;2-U
    Download Restriction: no
    File URL: https://libkey.io/10.1002/(SICI)1099-1050(199701)6:1<83::AID-HEC248>3.0.CO;2-U?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. Hirshleifer, J & Riley, John G, 1979. "The Analytics of Uncertainty and Information-An Expository Survey," Journal of Economic Literature, American Economic Association, vol. 17(4), pages 1375-1421, December.
    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. Francisco Alcalá & Miguel González‐Maestre, 2012. "Artistic Creation and Intellectual Property: A Professional Career Approach," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 633-672, September.
    2. Pasquale Schiraldi, 2006. "Second-Hand Markets and Collusion by Manufacturers of Semidurable Goods," Boston University - Department of Economics - Working Papers Series WP2006-028, Boston University - Department of Economics.
    3. Luis Eeckhoudt & Christian Gollier & Giovanni Immordino, 2001. "How Diagnostic Tests Affect Prevention: a Cost-Benefit Analysis," CSEF Working Papers 53, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. Andrew T. Young, 2008. "Replacing incomplete markets with a complete mess: Katrina and the NFIP," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(8), pages 561-568, July.
    5. Edgardo Bucciarelli & Nicola Mattoscio, 2021. "Reconsidering Herbert A. Simon’s Major Themes in Economics: Towards an Experimentally Grounded Capital Structure Theory Drawing from His Methodological Conjectures," Computational Economics, Springer;Society for Computational Economics, vol. 57(3), pages 799-823, March.
    6. Macauley, Molly, 2006. "Ascribing Societal Benefit to Environmental Observations of the Earth from Space: The Multi-angle Imaging Spectroradiometer (MISR)," RFF Working Paper Series dp-06-09, Resources for the Future.
    7. Michael Waldman, 2014. "What limits indirect appropriability?," Chapters, in: Richard Watt (ed.), Handbook on the Economics of Copyright, chapter 2, pages 26-48, Edward Elgar Publishing.
    8. Steinrücken, Torsten, 1999. "Wirtschaftspolitik für offene Kommunikationssysteme: eine ökonomische Analyse am Beispiel des Internet," Ilmenau Economics Discussion Papers 16, Ilmenau University of Technology, Institute of Economics.
    9. Patrick Warren & Tom Wilkening, 2010. "Regulatory Fog: The Informational Origins of Regulatory Persistence," Department of Economics - Working Papers Series 1113, The University of Melbourne.
    10. Eeckhoudt, Louis & Bauwens, Luc & Lebrun, Thérèse, 1987. "Théorie de l’information et diagnostic médical : une analyse coût-efficacité," L'Actualité Economique, Société Canadienne de Science Economique, vol. 63(2), pages 243-255, juin et s.
    11. Shanshan Qian & Dalong Ma & Chao Miao, 2016. "Deciding To Discover Entrepreneurial Opportunities: A Multi-Level Investigation Based On Informational Economics And Resource Dependence Theory," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-19, June.
    12. Christian Etter, 1986. "Versicherungsaspekte des Arbeitsverhältnisses: Der Einfluß impliziter Arbeitsverträge auf Löhne und Beschäftigung," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 122(III), pages 405-424, September.
    13. Edi Karni & David Schmeidler, 2016. "An expected utility theory for state-dependent preferences," Theory and Decision, Springer, vol. 81(4), pages 467-478, November.
    14. Claudia Schwirplies, 2015. "Adaptation vs. climate protection: Responses to climate change and policy preferences of individuals in China, Germany, and the USA," MAGKS Papers on Economics 201502, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Francesco Gangi & Jérôme Méric & Rémi Jardat & Lucia Michela Daniele, 2019. "Business for society," Post-Print hal-02382307, HAL.
    16. Karni, Edi, 1983. "Risk Aversion for State-Dependent Utility Functions: Measurement and Applications," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 637-647, October.
    17. Kaune, Alexander & Werner, Micha & Rodríguez, Erasmo & Karimi, Poolad & de Fraiture, Charlotte, 2017. "A novel tool to assess available hydrological information and the occurrence of sub-optimal water allocation decisions in large irrigation districts," Agricultural Water Management, Elsevier, vol. 191(C), pages 229-238.
    18. Otto Keck, 1987. "The Information Dilemma," Journal of Conflict Resolution, Peace Science Society (International), vol. 31(1), pages 139-163, March.
    19. Kylaheiko, K. & Sandstrom, J. & Virkkunen, V., 2002. "Dynamic capability view in terms of real options," International Journal of Production Economics, Elsevier, vol. 80(1), pages 65-83, November.
    20. Karl Duvemo & Tomas Lämås & Ljusk Eriksson & Peder Wikström, 2014. "Introducing cost-plus-loss analysis into a hierarchical forestry planning environment," Annals of Operations Research, Springer, vol. 219(1), pages 415-431, August.

    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:6:y:1997:i:1:p:83-85. 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.