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Estimating population cardinal health state valuation models from individual ordinal (rank) health state preference data

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  • McCabe, C
  • Brazier, J
  • Gilks, P
  • Tsuchiya, A
  • Roberts, J
  • O'Hagan, A
  • Stevens, K

Abstract

Ranking exercises have routinely been used as warm-up exercises within health state valuation surveys. Very little use has been made of the information obtained in this process. Instead, research has focussed upon the analysis of health state valuation data obtained using the visual analogue scale, standard gamble and time trade off methods. Thurstone’s law of comparative judgement postulates a stable relationship between ordinal and cardinal preferences, based upon the information provided by pairwise choices. McFadden proposed that this relationship could be modelled by estimating conditional logistic regression models where alternatives had been ranked. In this paper we report the estimation of such models for the Health Utilities Index Mark 2 and the SF-6D. The results are compared to the conventional regression models estimated from standard gamble data, and to the observed mean standard gamble health state valuations. For both the HUI2 and the SF-6D, the models estimated using rank data are broadly comparable to the models estimated on standard gamble data and the predictive performance of these models is close to that of the standard gamble models. Our research indicates that rank data has the potential to provide useful insights into community health state preferences. However, important questions remain.

Suggested Citation

  • McCabe, C & Brazier, J & Gilks, P & Tsuchiya, A & Roberts, J & O'Hagan, A & Stevens, K, 2004. "Estimating population cardinal health state valuation models from individual ordinal (rank) health state preference data," MPRA Paper 29759, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29759
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    References listed on IDEAS

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    1. Brazier, John & Roberts, Jennifer & Deverill, Mark, 2002. "The estimation of a preference-based measure of health from the SF-36," Journal of Health Economics, Elsevier, vol. 21(2), pages 271-292, March.
    2. Christopher McCabe & Katherine Stevens & Jennifer Roberts & John Brazier, 2005. "Health state values for the HUI 2 descriptive system: results from a UK survey," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 231-244, March.
    3. Hausman, Jerry A. & Ruud, Paul A., 1987. "Specifying and testing econometric models for rank-ordered data," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 83-104.
    4. Torrance, George W., 1986. "Measurement of health state utilities for economic appraisal : A review," Journal of Health Economics, Elsevier, vol. 5(1), pages 1-30, March.
    5. William Furlong & David Feeny & George Torrance & Ronald Barr & John Horsman, 1992. "Guide to Design and Development of Health-State Utility Instrumentation," Centre for Health Economics and Policy Analysis Working Paper Series 1990-09, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
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    Cited by:

    1. Brazier, J, 2005. "Current state of the art in preference-based measures of health and avenues for further research," MPRA Paper 29762, University Library of Munich, Germany.

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    More about this item

    Keywords

    health state valuation; HUI-2; SF-6D;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I19 - Health, Education, and Welfare - - Health - - - Other

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