IDEAS home Printed from https://ideas.repec.org/p/hhs/liuewp/0006.html
   My bibliography  Save this paper

Why People Hate Health Economics – Two Psychological Explanations

Author

Listed:
  • Tinghög, Gustav

    (Division of Economics, Department of Management and Engineering, Linköping University)

  • Västfjäll, Daniel

    (Division of Economics, Department of Management and Engineering, Linköping University)

Abstract

Rationing decisions based on health maximization are likely to conflict with the view of the general public. We argue that health economics at large has been oblivious to the core aspects of human nature and this has limited the use of health economics as a productive input in health policy. We present a psychological account for why the outcomes of health economic evaluations are unlikely to be compatible with public views and discuss implications for health policy. This psychological account emphasizes the occurrence of taboo-tradeoffs and compassion fade, two emotional phenomena that are especially likely to bias judgments about health care priority setting. Health economics as a tool for priority setting is also very much blind for the needs of the individual since it has an impersonal focus which gives little or no concern for individual needs. Given the disconnect for how people think and make decisions about the individual versus how people think and make decisions about aggregated groups this further helps to explain why people hate health economics.

Suggested Citation

  • Tinghög, Gustav & Västfjäll, Daniel, 2018. "Why People Hate Health Economics – Two Psychological Explanations," LiU Working Papers in Economics 6, Linköping University, Division of Economics, Department of Management and Engineering.
  • Handle: RePEc:hhs:liuewp:0006
    as

    Download full text from publisher

    File URL: http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-148852
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alan Williams, 1997. "Intergenerational Equity: An Exploration of the ‘Fair Innings’ Argument," Health Economics, John Wiley & Sons, Ltd., vol. 6(2), pages 117-132, March.
    Full references (including those not matched with items on IDEAS)

    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. Andrew J. Mirelman & Miqdad Asaria & Bryony Dawkins & Susan Griffin & Richard Cookson & Peter Berman, 2020. "Fairer Decisions, Better Health for All: Health Equity and Cost-Effectiveness Analysis," World Scientific Book Chapters, in: Paul Revill & Marc Suhrcke & Rodrigo Moreno-Serra & Mark Sculpher (ed.), Global Health Economics Shaping Health Policy in Low- and Middle-Income Countries, chapter 4, pages 99-132, World Scientific Publishing Co. Pte. Ltd..
    2. Cappelen, Alexander W. & Norheim, Ole Frithjof, 2006. "Responsibility, fairness and rationing in health care," Health Policy, Elsevier, vol. 76(3), pages 312-319, May.
    3. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2013. "A new axiomatic approach to the evaluation of population health," Journal of Health Economics, Elsevier, vol. 32(3), pages 515-523.
    4. Michaël Schwarzinger & Jean‐Louis Lanoë & Erik Nord & Isabelle Durand‐Zaleski, 2004. "Lack of multiplicative transitivity in person trade‐off responses," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 171-181, February.
    5. Mira Johri & Laura J. Damschroder & Brian J. Zikmund‐Fisher & Peter A. Ubel, 2005. "The importance of age in allocating health care resources: does intervention‐type matter?," Health Economics, John Wiley & Sons, Ltd., vol. 14(7), pages 669-678, July.
    6. Arnesen, Trude & Kapiriri, Lydia, 2004. "Can the value choices in DALYs influence global priority-setting?," Health Policy, Elsevier, vol. 70(2), pages 137-149, November.
    7. Rogowski, Wolf H. & Schleidgen, Sebastian, 2015. "Using needs-based frameworks for evaluating new technologies: An application to genetic tests," Health Policy, Elsevier, vol. 119(2), pages 147-155.
    8. Richardson, Jeff & Sinha, Kompal & Iezzi, Angelo & Maxwell, Aimee, 2012. "Maximising health versus sharing: Measuring preferences for the allocation of the health budget," Social Science & Medicine, Elsevier, vol. 75(8), pages 1351-1361.
    9. Peter A. Ubel & Jeff Richardson & Paul Menzel, 2000. "Societal value, the person trade‐off, and the dilemma of whose values to measure for cost‐effectiveness analysis," Health Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 127-136, March.
    10. Dolan, Paul & Olsen, Jan Abel, 2001. "Equity in health: the importance of different health streams," Journal of Health Economics, Elsevier, vol. 20(5), pages 823-834, September.
    11. Mæstad, Ottar & Norheim, Ole Frithjof, 2009. "Eliciting people's preferences for the distribution of health: A procedure for a more precise estimation of distributional weights," Journal of Health Economics, Elsevier, vol. 28(3), pages 570-577, May.
    12. Cookson, Richard & Hutton, John, 2003. "Regulating the economic evaluation of pharmaceuticals and medical devices: a European perspective," Health Policy, Elsevier, vol. 63(2), pages 167-178, February.
    13. Shah, Koonal K., 2009. "Severity of illness and priority setting in healthcare: A review of the literature," Health Policy, Elsevier, vol. 93(2-3), pages 77-84, December.
    14. Magnus Johannesson, 2001. "Should we aggregate relative or absolute changes in QALYs?," Health Economics, John Wiley & Sons, Ltd., vol. 10(7), pages 573-577, October.
    15. Lars Peter Østerdal, 2003. "A note on cost‐value analysis," Health Economics, John Wiley & Sons, Ltd., vol. 12(3), pages 247-250, March.
    16. MORENO-TERNERO, Juan & OSTERDAL, Lars P., 2014. "Normative foundations for equity-sensitive population health evaluation functions," LIDAM Discussion Papers CORE 2014031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    17. Amartya Sen, 2002. "Why health equity?," Health Economics, John Wiley & Sons, Ltd., vol. 11(8), pages 659-666, December.
    18. Nord, Erik & Johansen, Rune, 2014. "Concerns for severity in priority setting in health care: A review of trade-off data in preference studies and implications for societal willingness to pay for a QALY," Health Policy, Elsevier, vol. 116(2), pages 281-288.
    19. Hansen, Lise Desireé & Kjær, Trine, 2019. "Disentangling public preferences for health gains at end-of-life: Further evidence of no support of an end-of-life premium," Social Science & Medicine, Elsevier, vol. 236(C), pages 1-1.
    20. Mæstad, Ottar & Norheim, Ole Frithjof, 2012. "A universal preference for equality in health? Reasons to reconsider properties of applied social welfare functions," Social Science & Medicine, Elsevier, vol. 75(10), pages 1836-1843.

    More about this item

    Keywords

    Health Economics; Medical Decision Making; Health Care Priority Setting; Emotions; Psychology;
    All these keywords.

    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hhs:liuewp:0006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/anliuse.html .

    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: Ali Ahmed (email available below). General contact details of provider: https://edirc.repec.org/data/anliuse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.