Adjusting to changes in health: implications for cost-effectiveness analysis.

Abstract:

:This article introduces a model in which individuals incur adjustment costs associated with adaptations made following changes in their health. With adjustment costs, patients' preferences for health states depend on their initial health in such a way that improvements have lower values than corresponding deteriorations. Improvement and deterioration must therefore be treated asymmetrically in CEA. The inclusion of adjustment costs also has other consequences. It produces a more stringent CEA criterion, and may affect the relative rankings of interventions. In addition, when health is multi-dimensional, and adjustment costs are incorporated, we show that a consensus on even ordinal rankings of health states becomes impossible.

journal_name

J Health Econ

authors

Sharma R,Stano M,Haas M

doi

10.1016/j.jhealeco.2003.12.004

subject

Has Abstract

pub_date

2004-03-01 00:00:00

pages

335-51

issue

2

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(03)00118-8

journal_volume

23

pub_type

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