Longevity bias in cost-effectiveness analysis. Academic Article

abstract

• We use a simple lifetime utility maximization model to study the problem of medical resource allocation. This model leads to a welfare specification with a QALY (quality-adjusted life-year) component that captures an individual's preferences over both life expectancy and health status. The goal of medical cost-effectiveness analysis (CEA) is characterized as maximizing the QALY measure for a given total medical expenditure. We show that the CEA with such a goal has a longevity bias: the CEA-based division of a given total medical expenditure between extending life and improving health gives the former a larger share than is called for by welfare maximization.

authors

• Saving, Thomas

published proceedings

• Health Econ

author list (cited authors)

• Liu, L., Rettenmaier, A. J., & Saving, T. R.

citation count

• 5

complete list of authors

• Liu, Liqun||Rettenmaier, Andrew J||Saving, Thomas R

publication date

• April 2008

publisher

• Wiley  Publisher

published in

• Health Economics  Journal

keywords

• Bias
• Cost-benefit Analysis
• Health Care Rationing
• Health Status
• Humans
• Life Expectancy
• Longevity
• Models, Econometric
• Quality-adjusted Life Years

PubMed Central ID

• 17990284

Digital Object Identifier (DOI)

• 10.1002/hec.1309

start page

• 523

end page

• 534

volume

• 17

issue

• 4

URL

• http://dx.doi.org/10.1002/hec.1309