Skip to main page content
Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2007;25(1):3-6.
doi: 10.2165/00019053-200725010-00002.

Rates and Probabilities in Economic Modelling: Transformation, Translation and Appropriate Application

Affiliations

Rates and Probabilities in Economic Modelling: Transformation, Translation and Appropriate Application

Rachael L Fleurence et al. Pharmacoeconomics. .

Abstract

Economic modelling is increasingly being used to evaluate the cost effectiveness of health technologies. One of the requirements for good practice in modelling is appropriate application of rates and probabilities. In spite of previous descriptions of appropriate use of rates and probabilities, confusions persist beyond a simple understanding of their definitions. The objective of this article is to provide a concise guide to understanding the issues surrounding the use of rates and probabilities reported in the literature in economic models, and an understanding of when and how to transform them appropriately. The article begins by defining rates and probabilities and shows the essential difference between the two measures. Appropriate conversions between rates and probabilities are discussed, and simple examples are provided to illustrate the techniques and pitfalls. How the transformed rates and probabilities may be used in economic models is then described and some recommendations are suggested.

Similar articles

See all similar articles

Cited by 35 articles

See all "Cited by" articles

References

    1. Health Econ. 1997 May-Jun;6(3):217-27 - PubMed
    1. Med Decis Making. 1994 Jan-Mar;14(1):52-8 - PubMed
    1. Pharmacoeconomics. 2000 May;17(5):461-77 - PubMed
    1. Health Technol Assess. 2004 Sep;8(36):iii-iv, ix-xi, 1-158 - PubMed
    1. Am J Epidemiol. 2000 Jun 15;151(12):1158-71 - PubMed

MeSH terms

LinkOut - more resources

Feedback