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The Willingness to Pay for a QALY: a Review of the Empirical Literature

Listed author(s):
  • Ryen, Linda

    ()

    (Dept. of Economics)

  • Svensson, Mikael

    ()

    (Dept. of Economics)

There has been a rapid increase in the use of cost-effectiveness analysis, with Quality Adjusted Life Years (QALYs) as an outcome measure, in evaluating both medical technologies and public health interventions. Alongside, there is a growing literature on the monetary value of a QALY based on estimates of the willingness to pay (WTP). This paper conducts a review of the literature on the WTP for a QALY. In total 24 studies containing 383 unique estimates of the WTP for a QALY are identified. Trimmed mean and median estimates amount to 74,159 and 24,226 Euros (2010 price level), respectively. In regression analyses the results indicate that the WTP for a QALY is significantly higher if the QALY gain comes from life extension rather than quality of life improvements. The results also show that the WTP for a QALY is dependent on the size of the QALY gain valued.

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Paper provided by Department of Economics, Karlstad University in its series Karlstad University Working Papers in Economics with number 12.

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Length: 29 pages
Date of creation: 28 Jul 2014
Publication status: Forthcoming as Ryen, Linda and Mikael Svensson, 'The Willingness to Pay for a QALY: a Review of the Empirical Literature' in Health Economics, 2014.
Handle: RePEc:hhs:kaunek:0012
Contact details of provider: Postal:
Dept of Economics, Karlstad University, Universitetsgatan 1, SE 651 88 Karlstad, Sweden

Phone: 054 - 700 13 56
Fax: 054 - 700 14 97
Web page: http://www.kau.se/node/12323

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