Cost-benefit analysis and health care evaluations

List of figures x List of tables xi List of abbreviations xv Preface xvii Acknowledgements xix PART I INTRODUCTION 1 Introduction to health care evaluation 3 1.1 Introduction 3 1.2 Types of economic evaluation 6 1.3 The basics of cost–benefit analysis 11 1.4 Applications 14 1.5 Final section 25 PART II CM AND CBA 2 Cost minimization and the definition of ‘cost’ 31 2.1 Introduction 31 2.2 Cost minimization and economic theory 33 2.3 Cost–benefit analysis and cost minimization 41 2.4 Applications 46 2.5 Final section 56 3 Types of costs and their measurement 60 3.1 Introduction 60 3.2 Costs and markets 64 3.3 Costs versus charges 69 3.4 Applications 71 3.5 Final section 81 4 External costs 86 4.1 Introduction 86 4.2 External costs and markets 89 4.3 External costs over time 94 vii 4.4 Applications 98 4.5 Final section 108 5 Social cost of taxation 112 5.1 Introduction 112 5.2 Economic theory and the MCF 117 5.3 Estimates of the MCF 120 5.4 Applications 122 5.5 Final section 134 PART III CEA AND CBA 6 Fundamentals of cost-effectiveness analysis 141 6.1 Introduction 141 6.2 Basic principles of CEA 143 6.3 Methods for converting a CEA into a CBA 149 6.4 Applications 154 6.5 Final section 162 7 Further issues of cost-effectiveness analysis 165 7.1 Introduction 165 7.2 Discounting in CEA 166 7.3 Sampling error and uncertainty about estimates 173 7.4 Applications 178 7.5 Final section 188 PART IV CUA AND CBA 8 Fundamentals of cost–utility analysis 193 8.1 Introduction 193 8.2 Basic principles of CUA 196 8.3 CUA versus CBA 202 8.4 Applications 204 8.5 Final section 216 9 Measuring utilities in cost–utility analysis 219 9.1 Introduction 219 9.2 Main measurement sources 225 9.3 Main measurement methods 228 9.4 Applications 232 9.5 Final section 242 viii Contents 10 Cost–utility analysis and equity 246 10.1 Introduction 246 10.2 DALYs 249 10.3 QALYs and ageism 253 10.4 The person trade-off (PTO) 256 10.5 Applications 259 10.6 Final section 266 PART V CBA 11 Cost–benefit analysis and the human capital approach 271 11.1 Introduction 271 11.2 Human capital approach 273 11.3 The relation between WTP and human capital 275 11.4 Methods for converting a CUA into a CBA 279 11.5 Applications 283 11.6 Final section 292 12 Cost–benefit analysis and willingness to pay 296 12.1 Introduction 296 12.2 Willingness to pay approach 300 12.3 WTP and rationing by time 303 12.4 Applications 309 12.5 Final section 320 13 Cost–benefit analysis and equity 323 13.1 Introduction 323 13.2 Distribution weights 328 13.3 Numbers effect 332 13.4 Applications 335 13.5 Final section 346 References 353 Index 365