The willingness to pay for health changes, the human-capital approach and the external costs

doi:10.1016/0168-8510(96)00815-9

Health Policy

Volume 36, Issue 3, June 1996, Pages 231-244

https://doi.org/10.1016/0168-8510(96)00815-9 Get rights and content

Abstract

In this paper, the relationship between willingness to pay for health changes, the human-capital approach, and the costs that should be included in a cost-benefit analysis of a health care programme are analysed. The costs that should be included are defined as the change in consumption minus the change in production of the individual that receives a health care programme. The size of these external costs differs depending on the institutional arrangements in society. It is shown that the net production version of the human-capital approach is an estimation of the external costs. The human-capital approach can thus be given a theoretical foundation in cost-benefit analysis if it is used to estimate the external costs.

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View full text

The willingness to pay for health changes, the human-capital approach and the external costs

Abstract

The life you save may be your own

Evaluation of life and limb: a theoretical approach

Journal of Political Economy

Economics of coronary artery bypass grafting

British Medical Journal

Cost-benefit analysis of non-pharmacological treatment of hypertension

Journal of Internal Medicine

The cost-effectiveness of a new antihypertensive drug, doxazosin

Current Therapeutic Research