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On the possibility of a bridge between CBA and CEA: Comments on a paper by Dolan and Edlin

Author

Listed:
  • B. O. Hansen

    (Institute of Economics, Copenhagen Business School)

  • Jens Leth Hougaard

    (Institute of Economics, University of Copenhagen)

  • Hans Keiding

    (Institute of Public Health, University of Copenhagen)

  • L. P. Østerdal

    (Institute of Public Health, University of Copenhagen)

Abstract

In a recent work by Dolan and Edlin it is concluded that no link can be established between cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA). However, the conclusion seems to depend rather heavily on what is understood by a link between CBA and CEA as well as on the exact meaning of the latter two terms. We argue that there is at least one approach to CBA and CEA in which the two are very intimately linked. On the other hand, the limitations in the access to preference information has consequences for the kind of questions that can be meaningfully addresses in both CBA and CEA.

Suggested Citation

  • B. O. Hansen & Jens Leth Hougaard & Hans Keiding & L. P. Østerdal, 2002. "On the possibility of a bridge between CBA and CEA: Comments on a paper by Dolan and Edlin," Discussion Papers 02-21, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:0221
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    Cited by:

    1. is not listed on IDEAS
    2. Don Kenkel, 2006. "WTP- and QALY-Based Approaches to Valuing Health for Policy: Common Ground and Disputed Territory," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(3), pages 419-437, July.
    3. Hougaard, Jens Leth & Keiding, Hans, 2005. "On the aggregation of health status measures," Journal of Health Economics, Elsevier, vol. 24(6), pages 1154-1173, November.
    4. Edlin, Richard, 2004. "Anti-social welfare functions: a reply to Hansen et al," Journal of Health Economics, Elsevier, vol. 23(5), pages 899-905, September.
    5. David Canning, 2013. "Axiomatic Foundations For Cost‐Effectiveness Analysis," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1405-1416, December.

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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