Advertisement

Cost-Effectiveness Analysis

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

Abstract

This chapter is devoted to cost-effectiveness analysis. In a cost-effectiveness analysis the costs are measured in monetary terms and the health effects are measured in non-monetary terms, e.g. the number of life years gained. The ratio between costs and health effects is then estimated as e.g. the cost per gained life year. Cost-effectiveness analysis of health care programmes was developed in the medical field, as a response to the criticism about the use of the human-capital approach for valuing health changes in monetary terms, and the first study in the health care field by Klarman et al appeared in 1968.

Keywords

Decision Rule Constant Return Health Care Programme Fixed Budget Effectiveness Unit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Baumol WJ. Economic theoty and operations analysis. 3rd edition. London: Prentice Hall, 1972.Google Scholar
  2. Boyle Mil, Torrance GW, Sinclair JC, Horwood SP. Economic evaluation of neonatal intensive care of very-low-birth-weight infants. New England Journal of Medicine 1983; 308: 1330–1337.CrossRefGoogle Scholar
  3. Cropper M, Aydede SK, Portney PR Discounting human lives. American Journal of Agricultural Economics 1991; 73: 1410–1415.CrossRefGoogle Scholar
  4. Edelson JT, Weinstein MC, Tosteson AN, Williams L, Lee TH, Goldman L. Long-term cost-effectiveness of various initial monotherapies for mild to moderate hypertension. Journal of the American Medical Association 1990; 263: 407–413.CrossRefGoogle Scholar
  5. Freeman AM. The measurement of environmental and resource values: theory and methods. Washington D.C.: Resources for the Future, 1993.Google Scholar
  6. Johannesson M. The impact of age on the cost-effectiveness of hypertension treatment: an analysis of randomized drug trials. Medical Decision Making 1994; 14: 236–244.CrossRefGoogle Scholar
  7. Johannesson M. The cost-effectiveness of hypertension treatment in Sweden PhannacoEconomics 1995; 7: 242–250.Google Scholar
  8. Johannesson M, Weinstein MC. On the decision mles of cost-effectiveness analysis. Journal of Health Economics 1993; 12: 459–467.CrossRefGoogle Scholar
  9. Johanson P-O. Cost-benefit analysis of environmental change. Cambridge: Cambridge University Press, 1993.CrossRefGoogle Scholar
  10. Jönsson B, Haglund U. Cost-effectiveness of misoprostol in Sweden International Journal of Technology Assessment in Health Care 1992; 8: 234–244.Google Scholar
  11. Keeler EB, Cretin S. Discounting of life-saving and other nonmonetary effects. Management Science 1983; 29: 300–306.CrossRefGoogle Scholar
  12. Klannan HE, Francis JOS, Rosenthal G. Cost-effectiveness analysis applied to the treatment of chronic renal disease. Medical Care 1968; 6: 48–54.CrossRefGoogle Scholar
  13. Logan AG, Milne BJ, Achber C, Campbell WP, Haynes RB. Cost-effectiveness of a worksite hypertension treatment programme. Hypertension 1981; 3: 211–218.CrossRefGoogle Scholar
  14. Morrall JF III. A review of the record. Regulation 1986; 10: 25–34.Google Scholar
  15. Schulman KA, Lynn LA, Glick HA, Eisenberg JM. Cost-effectiveness of low-dose zidovudine therapy for asymptomatic patients with human immunodeficiency viers (HIV) infection. Annals of Internal Medicine 1991; 114: 798–802.Google Scholar
  16. Sintonen H, Mander V. Comparing the cost-effectiveness of drug regimens in the treatment of duodenal ulcers. Journal of Health Economics 1990; 9: 85–101.CrossRefGoogle Scholar
  17. Sugden R, Williams A The principles of practical cost-benefit analysis Oxford: Oxford University Press, 1978.Google Scholar
  18. Viscusi WK Fatal tradeoffs: public and private responsibilities for risk. New York: Oxford University Press, 1992.Google Scholar
  19. Weinstein MC. Principles of cost-effective resource allocation in health care organisations. International Journal of Technology Assessment in Health Care 1990; 6: 93–103.CrossRefGoogle Scholar
  20. Weinstein MC, Stason WB. Hypertension: a policy perspective. Cambridge MA: Harvard University Press, 1976.Google Scholar
  21. Weinstein MC, Stason WB. Foundations of cost-effectiveness analysis for health and medical practices. New England Journal of Medicine 1977; 296: 716–721.CrossRefGoogle Scholar
  22. Weinstein MC, Zeckhauser R Critical ratios and efficient allocation. Journal of Public Economics 1973; 2: 147–157.CrossRefGoogle Scholar
  23. Williams A Economics of coronary artery bypass grafting. British Medical Journal 1985; 291: 326–329.CrossRefGoogle Scholar
  24. Winston WL Operations research: applications and algorithms. Second edition. Boston: PWS-Kent Publishing Company, 1991.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1996

Authors and Affiliations

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

Personalised recommendations