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

Author

Listed:
  • Anne-Laure Samson

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, Legos - Laboratoire d'Economie et de Gestion des Organisations de Santé - Université Paris-Dauphine)

  • Erik Schokkaert

    (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain)

  • Clémence Thébaut

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, OMIJ - Observatoire des Mutations Institutionnelles et Juridiques - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges, HAS - Haute Autorité de Santé [Saint-Denis La Plaine])

  • Brigitte Dormont

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, Legos - Laboratoire d'Economie et de Gestion des Organisations de Santé - Université Paris-Dauphine)

  • Marc Fleurbaey

    (WWSPIL - Woodrow Wilson School of Public and International Affairs - Princeton University)

  • Stéphane Luchini

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Karine van de Voorde

    (Department of Economics, KU Leuven)

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.

Suggested Citation

  • Anne-Laure Samson & Erik Schokkaert & Clémence Thébaut & Brigitte Dormont & Marc Fleurbaey & Stéphane Luchini & Karine van de Voorde, 2018. "Fairness in cost-benefit analysis: A methodology for health techonology assessment," Post-Print hal-02302587, HAL.
  • Handle: RePEc:hal:journl:hal-02302587
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02302587
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    Cited by:

    1. 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.
    2. 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.

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