Estimating the Value of Health Improvements
Author Information
Author(s): Wim Groot, Henriëtte Maassen van den Brink
Primary Institution: Maastricht University and University of Amsterdam
Hypothesis
What is the monetary value of health improvements as measured by compensating income variation?
Conclusion
The compensating income variation for health problems is estimated to be between €20,000 and €90,000, suggesting that current cost-effectiveness thresholds may undervalue health interventions.
Supporting Evidence
- The compensating income variation is higher than most values used by policymakers.
- Estimates suggest that the maximum acceptable cost-effectiveness ratio for medical interventions is higher than current thresholds.
- Subjective well-being measures provide reliable estimates of health value.
Takeaway
This study tries to find out how much money people would need to feel as good as someone without health problems, and it turns out that this amount is quite high.
Methodology
The study uses data from the 2004 Periodic Life Style Survey in the Netherlands to estimate the compensating income variation of health impairments based on subjective well-being.
Potential Biases
Potential biases include the optimism or pessimism of respondents affecting their self-reported well-being.
Limitations
The study's estimates may be affected by the way subjective well-being questions are phrased and the small sample sizes for certain health conditions.
Participant Demographics
The sample includes individuals aged 16 and older from the Netherlands, with a response rate of approximately 60%.
Digital Object Identifier (DOI)
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