The Estimation of Costs

  • Magnus Johannesson
Part of the Developments in Health Economics and Public Policy book series (HEPP, volume 4)


After estimating the benefits, the costs also have to be estimated. In Chapters 3 and 4 dealing with the definitions of costs and benefits, we used the term costs to reflect the resource consequences of a treatment. The resource consequences were defined as the effect on the consumption of goods and services of a health care programme and the effect on the consumption of leisure. The resource consequences were also divided into those that are paid by the recipients of a health care programme and those that are paid by other people in society. The costs that are carried by other people were defined as the external costs of a programme.


Leisure Time Physician Visit Health Care Centre External Cost Health Production 
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Copyright information

© Springer Science+Business Media Dordrecht 1996

Authors and Affiliations

  • Magnus Johannesson
    • 1
  1. 1.Stockholm School of EconomicsSweden

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