Cost-Effectiveness of Heuristic Decision Rules for Inventory Systems with Stochastic Dynamic Demand

The purpose of economic decision rules is to guide decision makers who have competing goals or are uncertain about how their goals can be fulfilled. This chapter discusses the assumptions underlying major decision rules such as expected utility maximization, discounting of future events, maximin, and various types of efficiency criteria including cost effectiveness and Pareto efficiency. All of these decision rules impose restrictions on the information to be taken into account, and since these restrictions are value laden, so are the decision rules. However, in the process of applying decision rules, the value assumptions are often put out of sight instead of being brought forward and discussed.

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Cost-Effectiveness Analysis in Mental Health

Canadian Journal of Community Mental Health ◽

10.7870/cjcmh-1986-0007 ◽

1986 ◽

Vol 5 (1) ◽

pp. 77-88

Author(s):

Sue M. Weinstein

Keyword(s):

Mental Health ◽

Cost Effectiveness ◽

Evaluation Model ◽

Decision Rules ◽

Data Gathering ◽

Mental Health Program ◽

Cost Effectiveness Analysis ◽

Effectiveness Analysis ◽

Mental Health Settings ◽

Economic Evaluation Model

As costs rise and demands for services increase, governments are beginning to insist that mental health program administrators demonstrate that they are “worthwhile” in terms of results produced (outcomes) for money invested (costs). Cost-effectiveness analysis, one economic evaluation model, is presented as a potentially useful tool that can be employed in mental health settings. An overview of the definition, underlying assumptions, and procedures of cost-effectiveness analysis is provided. Issues relating to the manner in which cost and effectiveness information is presented to decision makers along with associated decision rules are also reviewed. It is concluded that it is difficult to “buy” the cost-effectiveness model as it now exists. Modifications in its assumptions, data gathering and data combination techniques are warranted so that the model can be applicable to mental health settings and policies. The general theme underlying suggested modifications is that values and constraints associated with all aspects of a cost-effectiveness problem must be made explicit and should guide analytic procedures.

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Future Costs, Fixed Healthcare Budgets, and the Decision Rules of Cost-Effectiveness Analysis

Health Economics ◽

10.1002/hec.3138 ◽

2014 ◽

Vol 25 (2) ◽

pp. 237-248 ◽

Cited By ~ 25

Author(s):

Pieter van Baal ◽

David Meltzer ◽

Werner Brouwer

Keyword(s):

Cost Effectiveness ◽

Decision Rules ◽

Cost Effectiveness Analysis ◽

Effectiveness Analysis

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Theories of Health Care Cost-Effectiveness Analysis

10.31235/osf.io/gjbcp ◽

2017 ◽

Author(s):

Richard Ernst

Keyword(s):

Health Care ◽

Cost Effectiveness ◽

Health Care Cost ◽

Statistical Tests ◽

Decision Rules ◽

Cost Effectiveness Analysis ◽

Public Health Care ◽

Effectiveness Analysis ◽

The Uk ◽

Care Agency

The core of health care cost-effectiveness analysis is a set of decision rules for enabling public health care agencies to choose the most socially beneficial treatments to provide to or insure for their patient communities. Inappropriate versions of these rules are used by the national and provincial health services of the UK and several of the commonwealth countries, and they are also commonly used in published cost-effectiveness analyses. Here the correct decision rules are derived from standard utilitarian welfare premises and two different models of the optimizing behavior of a rational health care agency. The methods of probabilistic cost-effectiveness are discussed, and statistical tests are proposed for applying the decision rules under conditions of uncertainty.

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