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Estimating production costs in the economic evaluation of health-care programs

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  • HERRERO, Carmen
  • MORENO-TERNERO, Juan D.

Abstract

We propose a method for calculating the production costs of an intervention in a manner that accounts for differences in productive 'effort.' This method could be used within a cost-effectiveness analysis framework in the evaluation of new medical technologies, pharmaceuticals, treatment programs, or public health interventions. We apply it to show evidence in favor of implementing a newborn screening program to detect congenital hearing impairment. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://dx.doi.org/10.1002/hec.1345
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers RP with number 2111.

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Handle: RePEc:cor:louvrp:2111
Note: In : Health Economics, 18, 21-35, 2009
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  1. Johannesson, Magnus, 1995. "The relationship between cost-effectiveness analysis and cost-benefit analysis," Social Science & Medicine, Elsevier, vol. 41(4), pages 483-489, August.
  2. Marc Fleurbaey & François Maniquet, 2006. "Compensation and responsibility," Working Papers halshs-00121367, HAL.
  3. Wu, Stephen, 2003. "Sickness and preventive medical behavior," Journal of Health Economics, Elsevier, vol. 22(4), pages 675-689, July.
  4. Byrne, Margaret M. & Thompson, Peter, 2001. "Screening and preventable illness," Journal of Health Economics, Elsevier, vol. 20(6), pages 1077-1088, November.
  5. Werner B. F. Brouwer & Marc A. Koopmanschap & Frans F. H. Rutten, 1997. "Productivity Costs Measurement Through Quality of Life? A Response to the Recommendation of the Washington Panel," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 253-259.
  6. Bleichrodt, Han & Herrero, Carmen & Pinto, Jose Luis, 2002. "A proposal to solve the comparability problem in cost-utility analysis," Journal of Health Economics, Elsevier, vol. 21(3), pages 397-403, May.
  7. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 791-810.
  8. Cowell, F.A., 2000. "Measurement of inequality," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 2, pages 87-166 Elsevier.
  9. Clark, Andrew E. & Masclet, David & Villeval, Marie Claire, 2006. "Effort and Comparison Income: Experimental and Survey Evidence," IZA Discussion Papers 2169, Institute for the Study of Labor (IZA).
  10. Olsen, Jan Abel & Richardson, Jeff, 1999. "Production gains from health care: what should be included in cost-effectiveness analyses?," Social Science & Medicine, Elsevier, vol. 49(1), pages 17-26, July.
  11. Werner B.F. Brouwer & Marc A. Koopmanschap & Frans F.H. Rutten, 1997. "Productivity costs in cost-effectiveness analysis: numerator or denominator: a further discussion," Health Economics, John Wiley & Sons, Ltd., vol. 6(5), pages 511-514.
  12. Gravelle, H. S. E. & Simpson, P. R. & Chamberlain, J., 1982. "Breast cancer screening and health service costs," Journal of Health Economics, Elsevier, vol. 1(2), pages 185-207, August.
  13. Carmen Herrero & Juan D. Moreno-Ternero, 2005. "Hospital costs and social cost: A case study of newborn hearing screening," Investigaciones Economicas, Fundación SEPI, vol. 29(1), pages 203-216, January.
  14. Koopmanschap, Marc A. & Rutten, Frans F. H. & van Ineveld, B. Martin & van Roijen, Leona, 1995. "The friction cost method for measuring indirect costs of disease," Journal of Health Economics, Elsevier, vol. 14(2), pages 171-189, June.
  15. Brouwer, W. B. F. & Koopmanschap, M. A. & Rutten, F. F. H., 1999. "Productivity losses without absence: measurement validation and empirical evidence," Health Policy, Elsevier, vol. 48(1), pages 13-27, July.
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