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Abstract
This chapter focuses on the nexus of health economics and clinical research. The chapter is an intermediate level introduction to the role of economics in clinical trials. Topics that fall under this general domain are the role of economic analysis in allocation decisions of research resources, the role of economic analysis in public health policy involving the dissemination of the products of clinical research, and specific economic evaluations in the context of clinical trials. The concept of cost plays a crucial role in the economic analysis of health. A variety of special statistical issues has been recognized in the context of economic analysis alongside clinical trials. These issues arise because economic data are complex, multivariate, and longitudinal. As economic data tend to have high variance with a high degree of skewness; and the number of economic observations available from clinical trials is usually modest.
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