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Fairness in cost-benefit analysis: A methodology for health technology assessment

Author

Listed:
  • Anne-Laure Samson
  • Erik Schokkaert
  • Clémence Thébaut
  • Brigitte Dormont

Abstract

We evaluate the introduction of various forms of antihypertensive treatments in France with a distribution-sensitive cost-benefit analysis. Compared to traditional cost-benefit analysis, we implement distributional weighting based on equivalent incomes, a new concept of individual well-being that does respect individual preferences but is not subjectively welfarist. Individual preferences are estimated on the basis of a contingent valuation question, introduced into a representative survey of the French population. Compared to traditional cost-effectiveness analysis in health technology assessment, we show that it is feasible to go beyond a narrow evaluation of health outcomes while still fully exploiting the sophistication of medical information. Sensitivity analysis illustrates the relevancy of this richer welfare framework, the importance of the distinction between an ex ante and an ex post approach, and the need to consider distributional effects in a broader institutional setting.
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Suggested Citation

  • Anne-Laure Samson & Erik Schokkaert & Clémence Thébaut & Brigitte Dormont, 2018. "Fairness in cost-benefit analysis: A methodology for health technology assessment," LIDAM Reprints CORE 2957, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:2957
    Note: In : Health Economics, 27, 102-114, 2018
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    Cited by:

    1. Marko Ledic & Ivica Rubil, 2020. "Does going beyond income make a difference? Income vs. equivalent income in the EU over 2007-2011," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 423-462.
    2. Victor Champonnois & Olivier Chanel, 2023. "Accounting for subsistence needs in non-market valuation: a simple proposal," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(5), pages 1037-1060, April.
    3. Aurélie Pierre & Florence Jusot & Denis Raynaud & Carine Franc, 2018. "Généralisation de la complémentaire santé d’entreprise. Une évaluation ex ante des gains et des pertes de bien-être," Revue économique, Presses de Sciences-Po, vol. 69(3), pages 407-441.
    4. Attema, Arthur E. & L'Haridon, Olivier & van de Kuilen, Gijs, 2023. "Decomposing social risk preferences for health and wealth," Journal of Health Economics, Elsevier, vol. 90(C).
    5. DA COSTA Shaun Mark, 2025. "Composite indices and preference-based measures of wellbeing," JRC Research Reports JRC141107, Joint Research Centre.
    6. Hammitt, James K., 2022. "Prevention, treatment, and palliative care: The relative value of health improvements under alternative evaluation frameworks," Journal of Health Economics, Elsevier, vol. 84(C).
    7. repec:spo:wpmain:info:hdl:2441/5lge9h8e809258uvvpjn34ekm4 is not listed on IDEAS
    8. An, Yuulin & Chin, Sayorn & Miller, Ray, 2025. "Growing old in rural America: Measuring late-life health and economic well-being," The Journal of the Economics of Ageing, Elsevier, vol. 31(C).
    9. Marko Ledić & Ivica Rubil, 2021. "Beyond Wage Gap, Towards Job Quality Gap: The Role of Inter-Group Differences in Wages, Non-Wage Job Dimensions, and Preferences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 523-561, June.
    10. Brigitte Dormont & Anne-Laure Samson & Marc Fleurbaey & Stéphane Luchini & Erik Schokkaert, 2018. "Individual Uncertainty About Longevity," Demography, Springer;Population Association of America (PAA), vol. 55(5), pages 1829-1854, October.
    11. Denis Fougère & Arthur Heim, 2019. "L'évaluation socioéconomique de l'investissement social," Working Papers hal-03456048, HAL.

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