I look at three debates in the health economics literature in the context of cost-effectiveness analysis (CEA): 1) inclusion of future costs, 2) discounting, and 3) consistency with a welfare-economic perspective. These debates thus far have been studied in isolation leading to confusion and lingering questions. I look at these three debates holistically and present a welfare theoretic model that is consistent with the practice of CEA and can help inform all of these three debates. It shows rationales for the recommendations of the Second Panel and clarifies some nuanced implications for the practice of CEA when taking a societal perspective in the context of distributional CEA and multi-sectorial budgets.
Keywords: Cost-effectiveness analysis; Discounting; Distributive CEA; Future costs; Societal perspective; Utility; Welfare economics.
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Good Research Practices for Measuring Drug Costs in Cost Effectiveness Analyses: Issues and Recommendations: The ISPOR Drug Cost Task Force report--Part IJW Hay et al. Value Health 13 (1), 3-7. PMID 19874571.Drug transaction prices not only ration current use of medication but also ration future biomedical research and development. CEA researchers should tailor the appropriat …
Good Research Practices for Measuring Drug Costs in Cost-Effectiveness Analyses: A Societal Perspective: The ISPOR Drug Cost Task Force report--Part IILP Garrison Jr et al. Value Health 13 (1), 8-13. PMID 19883405.Our key recommendation is that current CEA practice acknowledge and embrace this limitation by adopting a new standard for the reference case as one of a "limited societa …
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Universal Access to HIV Treatment in Developing Countries: Going Beyond the Misinterpretations of the 'Cost-Effectiveness' AlgorithmJP Moatti et al. AIDS 22 Suppl 1, S59-66. PMID 18664955. - ReviewBecause of their empirical and theoretical limitations, results of CEA should only be one element in priority setting among interventions for HIV/AIDS, which should also …
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