Abstract
The contingent valuation (CV) method is the most direct approach of the cost-benefit analysis which measures both resource costs and health benefits in monetary terms. In the CV method the monetary value of a (nonmarketed) good is determined by asking people about their willingness-to-pay (WTP) for the good under evaluation. Whereas in environmental economics the CV method has become the standard approach to elicit WTP for environmental goods, reluctance against valuing health effects in monetary terms is still widespread. In addition, it is criticized that WTP is difficult to measure and that it may be positively correlated with wealth or income (Pauly, 1995). Nevertheless, the interest for the CV method is growing in the health care field as well. Klose (1999) reviewed 67 health care studies, published before 1998, which meet the criteria of CV studies. He concludes that WTP is a more comprehensive effectiveness measure than other usually used measures (e.g., physical or utility measures), since it recognizes health as well as non-health benefits from health interventions. However, before results can be used with confidence in health care decision making, more research concerning the design of a CV study or the choice of the elicitation technique is still necessary.KeywordsContingent ValuationContingent Valuation MethodDichotomous ChoiceElicitation MethodPayment CardThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call