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The value of disease prevention vs treatment
- Source :
- Journal of Health Economics, Journal of Health Economics, Elsevier, 2016, 50, pp.247-255. ⟨10.1016/j.jhealeco.2016.08.005⟩
- Publication Year :
- 2016
- Publisher :
- HAL CCSD, 2016.
-
Abstract
- International audience; We present an integrated valuation model for diseases that are life-threatening. The model extends the standard one-period value-per-statistical-life model to three health prospects: healthy, ill, and dead. We derive willingness-to-pay values for prevention efforts that reduce a disease's incidence rate as well as for treatments that lower the corresponding health deterioration and mortality rates. We find that the demand value of prevention always exceeds that of treatment. People often overweight small risks and underweight large ones. We use the rank dependent utility framework to explore how the demand for prevention and treatment alters when people evaluate probabilities in a non-linear manner. For incidence and mortality rates associated with common types of cancers, the inverseS shaped probability weighting found in experimental studies leads to a significant increase in the demand values of both treatment and prevention.
- Subjects :
- Risk
Therapeutics
Disease
Overweight
Keywords
Chronic disease
03 medical and health sciences
Willingness to pay
0502 economics and business
medicine
Economics
Humans
050207 economics
I10
B- ECONOMIE ET FINANCE
Valuation (finance)
D11
Models, Statistical
Actuarial science
JEL classification
030503 health policy & services
Health Policy
Incidence (epidemiology)
Mortality rate
05 social sciences
Public Health, Environmental and Occupational Health
Health risk valuation
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
3. Good health
Primary Prevention
D81
Willingness-to-pay
Income
Disease prevention
medicine.symptom
Underweight
0305 other medical science
Delivery of Health Care
Probability weighting
Demography
Subjects
Details
- Language :
- English
- ISSN :
- 01676296
- Database :
- OpenAIRE
- Journal :
- Journal of Health Economics, Journal of Health Economics, Elsevier, 2016, 50, pp.247-255. ⟨10.1016/j.jhealeco.2016.08.005⟩
- Accession number :
- edsair.doi.dedup.....821013354d5c302c33e29de1c8fc41ca