IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v9y2000i7p631-641.html
   My bibliography  Save this article

Institutional considerations in priority setting: transactions cost perspective on PBMA

Author

Listed:
  • Stephen Jan

Abstract

Programme budgeting and marginal analysis (PBMA) is increasingly being used as a method of priority setting in the health care sector. Despite this, PBMA has, on occasions, been subject to problems in its application which can be seen as being ‘institutional’ in nature. This paper examines the extent to which the institutional setting of PBMA affects the way in which it can be conducted. In particular, a transactions costs perspective is taken to analyse the extent to which variation in such costs can alter the incentives of the individual participants. A number of recommendations for improving the sustainability of such projects is then provided. Following this, the implications which this ‘institutional’ approach has for the evaluation of PBMA are set out. Copyright © 2000 John Wiley & Sons, Ltd.

Suggested Citation

  • Stephen Jan, 2000. "Institutional considerations in priority setting: transactions cost perspective on PBMA," Health Economics, John Wiley & Sons, Ltd., vol. 9(7), pages 631-641, October.
    • Handle: RePEc:wly:hlthec:v:9:y:2000:i:7:p:631-641
    DOI: 10.1002/1099-1050(200010)9:7<631::AID-HEC531>3.0.CO;2-N
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/1099-1050(200010)9:73.0.CO;2-N
    Download Restriction: no
    File URL: https://libkey.io/10.1002/1099-1050(200010)9:7<631::AID-HEC531>3.0.CO;2-N?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. Tirole, Jean, 1994. "The Internal Organization of Government," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 1-29, January.
    2. Douglass C. North, 1990. "A Transaction Cost Theory of Politics," Journal of Theoretical Politics, , vol. 2(4), pages 355-367, October.
    3. Gavin Mooney & Marion Haas & Rosalie Viney & Lyn Cooper, 1997. "Linking health outcomes to priority setting, planning and resource allocation - Report to the NSW Department of Health, CHERE Project Report No 1," Research Reports 1, CHERE, University of Technology, Sydney.
    4. Harberger, Arnold C, 1978. "On the Use of Distributional Weights in Social Cost-Benefit Analysis," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages 87-120, April.
    5. Williamson, Oliver E, 1999. "Public and Private Bureaucracies: A Transaction Cost Economics Perspective," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 306-342, April.
    6. Ronald H. Coase, 2000. "The new institutional economics," Chapters, in: Claude Ménard (ed.), Institutions, Contracts and Organizations, chapter 1, Edward Elgar Publishing.
    7. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
    8. Ben-Zion, Uri & Gafni, Amiram, 1983. "Evaluation of public investment in health care : Is the risk irrelevant?," Journal of Health Economics, Elsevier, vol. 2(2), pages 161-165, August.
    9. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-643, December.
    10. Williamson, Oliver E, 1971. "The Vertical Integration of Production: Market Failure Considerations," American Economic Review, American Economic Association, vol. 61(2), pages 112-123, May.
    11. Jan, Stephen, 1998. "A holistic approach to the economic evaluation of health programs using institutionalist methodology," Social Science & Medicine, Elsevier, vol. 47(10), pages 1565-1572, November.
    12. Craig, Neil & Parkin, David & Gerard, Karen, 1995. "Clearing the fog on the Tyne: programme budgeting in Newcastle and North Tyneside Health Authority," Health Policy, Elsevier, vol. 33(2), pages 107-125, August.
    13. A. Shiell & P. Hawe, 1996. "Health promotion community development and the tyranny of individualism," Health Economics, John Wiley & Sons, Ltd., vol. 5(3), pages 241-247, May.
    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. Jan, Stephen, 2003. "A perspective on the analysis of credible commitment and myopia in health sector decision making," Health Policy, Elsevier, vol. 63(3), pages 269-278, March.
    2. Smith, Neale & Mitton, Craig & Hall, William & Bryan, Stirling & Donaldson, Cam & Peacock, Stuart & Gibson, Jennifer L. & Urquhart, Bonnie, 2016. "High performance in healthcare priority setting and resource allocation: A literature- and case study-based framework in the Canadian context," Social Science & Medicine, Elsevier, vol. 162(C), pages 185-192.
    3. Patten, San & Mitton, Craig & Donaldson, Cam, 2006. "Using participatory action research to build a priority setting process in a Canadian Regional Health Authority," Social Science & Medicine, Elsevier, vol. 63(5), pages 1121-1134, September.
    4. Mooney, Gavin, 2005. "Communitarian claims and community capabilities: furthering priority setting?," Social Science & Medicine, Elsevier, vol. 60(2), pages 247-255, January.
    5. Peacock, Stuart J. & Richardson, Jeff R.J. & Carter, Rob & Edwards, Diana, 2007. "Priority setting in health care using multi-attribute utility theory and programme budgeting and marginal analysis (PBMA)," Social Science & Medicine, Elsevier, vol. 64(4), pages 897-910, February.
    6. Cornelissen, Evelyn & Mitton, Craig & Davidson, Alan & Reid, R. Colin & Hole, Rachelle & Visockas, Anne-Marie & Smith, Neale, 2014. "Changing priority setting practice: The role of implementation in practice change," Health Policy, Elsevier, vol. 117(2), pages 266-274.
    7. Edward C. F. Wilson & Stuart J. Peacock & Danny Ruta, 2009. "Priority setting in practice: what is the best way to compare costs and benefits?," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 467-478, April.

    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. Angelika Pasterniak & Hans Pitlik, 2008. "Einsparungs- und Effizienzsteigerungspotentiale in der öffentlichen Verwaltung. Ergebnisse einer international vergleichenden Analyse," WIFO Monatsberichte (monthly reports), WIFO, vol. 81(12), pages 923-940, December.
    2. Claude Ménard, 2018. "Organization and governance in the agrifood sector: How can we capture their variety?," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 142-160, December.
    3. Angelika Pasterniak & Hans Pitlik, 2009. "Potential for Savings and Efficiency Enhancement in Public Administration. Results of an International Benchmarking Analysis," Austrian Economic Quarterly, WIFO, vol. 14(1), pages 23-40, March.
    4. Frolov, Daniil, 2019. "From transaction costs to transaction value: Overcoming the Coase-Williamson paradigm," MPRA Paper 95959, University Library of Munich, Germany.
    5. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    6. Williamson, Oliver, 2009. "The Theory of the Firm as Governance Structure: From Choice to Contract," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 111-134, December.
    7. Gonzalo Caballero, 2004. "Instituciones e historia económica: enfoques y teorías institucionales," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 6(10), pages 135-157, January-J.
    8. Sexton, Richard J., 1991. "Game Theory: A Review With Applications To Vertical Control In Agricultural Markets," Working Papers 225865, University of California, Davis, Department of Agricultural and Resource Economics.
    9. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    10. Coggan, Anthea & Buitelaar, Edwin & Whitten, Stuart & Bennett, Jeff, 2013. "Factors that influence transaction costs in development offsets: Who bears what and why?," Ecological Economics, Elsevier, vol. 88(C), pages 222-231.
    11. Ruet, Joel, 2006. "Optimal timing in the privatisation of a utility in an emerging country: the case of electricity distribution in Delhi," Energy Policy, Elsevier, vol. 34(17), pages 2702-2718, November.
    12. Haas, Marion & Viney, Rosalie & Kristensen, Elizabeth & Pain, Charles & Foulds, Kim, 2001. "Using programme budgeting and marginal analysis to assist population based strategic planning for coronary heart disease," Health Policy, Elsevier, vol. 55(3), pages 173-186, March.
    13. Fazıl KAYIKÇI & Mustafa KESGİN, 2022. "Contributions of Institutional Economics to Economic Thought," Yildiz Social Science Review, Yildiz Technical University, vol. 8(1), pages 52-64.
    14. Bickenbach, Frank, 1999. "Regulierung und Wettbewerb im Bereich der Netzinfrastrukturen: Begründung, Regeln und Institutionen," Kiel Working Papers 910, Kiel Institute for the World Economy (IfW Kiel).
    15. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    16. Schmidt, Torsten, 2001. "Finanzreformen in der Bundesrepublik Deutschland: Analyse der Veränderungen der Finanzverfassung von 1949 bis 1989," RWI Schriften, RWI - Leibniz-Institut für Wirtschaftsforschung, volume 67, number 67.
    17. Jan, Stephen & Pronyk, Paul & Kim, Julia, 2008. "Accounting for institutional change in health economic evaluation: A program to tackle HIV/AIDS and gender violence in Southern Africa," Social Science & Medicine, Elsevier, vol. 66(4), pages 922-932, February.
    18. Goodell, John W., 2019. "Comparing normative institutionalism with intended rationality in cultural-finance research," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 124-134.
    19. Ashima Goyal, 2009. "Governance in Public Transport Systems: Comparing Indian Railways and Airways," Working Papers id:1857, eSocialSciences.
    20. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    21. Robert Inman, 2001. "Transfers and Bailouts: Institutions for Enforcing Local Fiscal Discipline," Constitutional Political Economy, Springer, vol. 12(2), pages 141-160, 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:9:y:2000:i:7:p:631-641. 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.