Cost-Benefit Analysis, Willingness to Pay

2005 ◽  
Author(s):  
Bernie O'Brien
Keyword(s):  
Willingness To Pay ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis

The Concept of Cost in the Economic Evaluation of Health Care: A Theoretical Inquiry

1994 ◽  
Vol 10 (4) ◽  
pp. 675-682 ◽  
Author(s):  
Magnus Johannesson
Keyword(s):  
Health Care ◽  
Economic Evaluation ◽  
Willingness To Pay ◽  
Treatment Program ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Economic Evaluations ◽  
Benefit Analysis ◽  
Full Economic Evaluation ◽  
The Individual

AbstractThe costs included in economic evaluations of health care vary from study to study. Based on the theory of cost-benefit analysis, the costs that should be included in an economic evaluation are those not already included in the measurement of willingness to pay (net willingness to pay above any treatment costs paid by the individual) in a cost-benefit analysis or in the easurement of effectiveness in a cost-effectiveness analysis. These costs can be defined as the onsumption externality of the treatment (the change in production minus consumption for those included in the treatment program). For a full economic evaluation, the consequences for those included in the treatment program and a caring externality (altruism) should also be added.

scholarly journals Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

2017 ◽  
Vol 5 (2) ◽  
pp. 28-40
Author(s):  
Björn Sund
Keyword(s):  
Cardiac Arrest ◽  
Willingness To Pay ◽  
Cause Of Death ◽  
Road Traffic ◽  
Cost Benefit Analysis ◽  
Stated Preference ◽  
Cost Benefit ◽  
Transport Sector ◽  
Benefit Analysis ◽  
Hospital Cardiac Arrest

Economic evaluation of policies regarding out-of-hospital cardiac arrest (OHCA) is important. The value of a statistical life (VSL) for OHCA victims is the most important component in a cost-benefit analysis of interventions that have the possibility to reduce mortality from this cause. This value is not known. We use responses to a national Swedish mail survey, based on the stated-preference technique to directly elicit individuals’ hypothetical willingness to pay for a reduced risk of dying from OHCA. A lower-bound estimate of VSL for OHCA would be in range of SEK 30 to 50 million. The value is found to be higher than for comparable VSL estimates from the transport sector, even though individuals who suffer OHCAs are generally older and less healthy than people who die in road traffic accidents. The results indicate that it is not an overestimation to use the ‘baseline’ VSL value from the transport sector (SEK 24 million) in cost-benefit analysis of OHCA policy decisions and that the cause of death is important when examining willingness to pay for death risk reductions. We do not support a general declining VSL due to the age of the victims, i.e. a ‘senior death discount’, for this cause of death.Published: Online January 2017. In print December 2017.

Robotic radiosurgery for the treatment of one to three brain metastases: A pragmatic application of cost-benefit analysis using willingness to pay.

2012 ◽  
Vol 30 (34_suppl) ◽  
pp. 17-17
Author(s):  
Jeffrey Noah Greenspoon ◽  
Waseem Sharieff ◽  
Anthony Whitton ◽  
Timothy Joseph Whelan ◽  
Jim R. Wright ◽  
...  
Keyword(s):  
Brain Metastases ◽  
Willingness To Pay ◽  
Incremental Cost ◽  
New Technologies ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Decision Makers ◽  
Benefit Analysis ◽  
Robotic Radiosurgery ◽  
Starting Point

17 Background: With the emergence of radiosurgery as a new radiotheraputic technique, health care decision makers are required to incorporate community need, cost and patient preferences when allocating radiosurgery resources. Conventional patient utility measures would not reflect short term preferences and would therefore not inform decision makers when allocating radiosurgery treatment units. The goal of this article is to demonstrate the feasibility of cost-benefit analysis to elicit the yearly net monetary benefit of robotic radiosurgery. Methods: To calculate the yearly incremental cost of robotic radiosurgery as compared to fixed-gantry radiosurgery we used direct local cost data. We assumed a standard 10 year replacement and 5% amortization rate. Decision boards summarizing the clinical scenario of brain metastases and the difference between robotic and fixed-gantry radiosurgery in terms of immobilization, comfort and treatment time were then presented to a sample of 18 participants. Participants who preferred robotic radiosurgery were randomly assigned to either a low ($1) or high ($5) starting point taxation based willingness-to-pay algorithm. Results: The yearly incremental cost of providing robotic radiosurgery was $99,177. The mean community yearly willingness-to pay for robotic radiosurgery was $2,300,000, p=0.03. The calculated yearly net societal benefit for robotic radiosurgery was $2,200,823. Among participants who preferred robotic radiosurgery there was no evidence of starting point bias, p=0.8. Conclusions: We have shown through this pilot study that it is feasible to perform cost-benefit analysis to evaluate new technologies in Radiation Oncology. Cost-benefit analysis offers an analytic method to evaluate local preferences and provide accountability when allocating limited healthcare resources.

PREFERENCE SATISFACTION AND WELFARE ECONOMICS

2009 ◽  
Vol 25 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Daniel M. Hausman ◽  
Michael S. McPherson
Keyword(s):  
Willingness To Pay ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Well Being ◽  
Welfare Economics ◽  
Benefit Analysis ◽  
False Beliefs ◽  
Philosophical Theory ◽  
Turn On ◽  
Good For

The tenuous claims of cost-benefit analysis to guide policy so as to promote welfare turn on measuring welfare by preference satisfaction and taking willingness-to-pay to indicate preferences. Yet it is obvious that people's preferences are not always self-interested and that false beliefs may lead people to prefer what is worse for them even when people are self-interested. So welfare is not preference satisfaction, and hence it appears that cost-benefit analysis and welfare economics in general rely on a mistaken theory of well-being. This essay explores the difficulties, criticizes standard defences of welfare economics, and then offers a new partial defence that maintains that welfare economics is independent of any philosophical theory of well-being. Welfare economics requires nothing more than anevidentialconnection between preference and welfare: in circumstances in which people are concerned with their own interests and reasonably good judges of what will serve their interests, their preferences will be reliable indicators of what is good for them.

Robotic Radiosurgery for the Treatment of 1–3 Brain Metastases: A Pragmatic Application of Cost-Benefit Analysis Using Willingness-To-Pay

2013 ◽  
Vol 12 (6) ◽  
pp. 517-523 ◽  
Author(s):  
Jeffrey Noah Greenspoon ◽  
Anthony Whitton ◽  
Timothy Whelan ◽  
Waseem Sharieff ◽  
James Wright ◽  
...  
Keyword(s):  
Brain Metastases ◽  
Willingness To Pay ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Robotic Radiosurgery

scholarly journals Water supply project feasibilities in fringe areas of Kolkata, India

2011 ◽  
Vol 4 (1) ◽  
pp. 9-23
Author(s):  
K. Dutta Roy ◽  
B. Thakur ◽  
T. S. Konar ◽  
S. N. Chakrabarty
Keyword(s):  
Water Quality ◽  
Willingness To Pay ◽  
Water Supply ◽  
Urban Areas ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Relevant Information ◽  
Benefit Analysis ◽  
Standard Cost ◽  
The Impact

Abstract. Water supply management to the peri-urban areas of the developing world is a complex task due to migration, infrastructure and paucity of fund. A cost-benefit methodology particularly suitable for the peri-urban areas has been developed for the city of Kolkata, India. The costs are estimated based on a neural network estimate. The water quality of the area is estimated from samples and a water quality index has been prepared. A questionnaire survey in the area has been conducted for relevant information like income, awareness and willingness to pay for safe drinking water. A factor analysis has been conducted for distinguishing the important factors of the survey and subsequent multiple regressions have been conducted for finding the relationships for the willingness to pay. A system dynamics model has been conducted to estimate the trend of increase of willingness to pay with the urbanizations in the peri-urban areas. A cost benefit analysis with the impact of time value of money has been executed. The risk and uncertainty of the project is investigated by Monte Carlos simulation and tornado diagrams. It has been found that the projects that are normally rejected in standard cost benefit analysis would be accepted if the impacts of urbanizations in the peri-urban areas are considered.

scholarly journals PCN52 WILLINGNESS TO PAY AND COST BENEFIT ANALYSIS OF DELIVERY METHODS FOR DECISION SUPPORT FOR RURAL CANCER PATIENTS

2011 ◽  
Vol 14 (3) ◽  
pp. A163
Author(s):  
L.S. Wilson ◽  
A. Loucks ◽  
L. Franklin ◽  
S. O'Donnell ◽  
D. Moore ◽  
...  
Keyword(s):  
Decision Support ◽  
Willingness To Pay ◽  
Cancer Patients ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Delivery Methods
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