Valuing Health Risk Reductions
2013
In this article, the authors discuss how to value risk reductions in the context of benefit-cost analysis. Many public policies and private actions affect the risk of injury, illness, or death, yet changes in these risks are not easily valued using market prices. The authors begin with a pragmatic focus, describing the analytic framework and the approaches currently used for valuation, including estimates of willingness to pay (WTP), cost of illness (COI), and monetized quality-adjusted life years (QALYs). They then turn to some conceptual issues that illustrate areas in need of further exploration.
Valuing Health Risk Reductions
Source:
Robinson LA, Hammitt JK. Skills of the Trade: Valuing Health Risk Reductions in Benefit-Cost Analysis. Journal of Benefit-Cost Analysis 2013; 4 (1): 107-130. https://doi.org/10.1515/jbca-2012-0006