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Discounting, Preferences, and Paternalism in Cost-Effectiveness Analysis

✍ Scribed by Gustav Tinghög

Book ID
113066379
Publisher
Springer US
Year
2011
Tongue
English
Weight
260 KB
Volume
20
Category
Article
ISSN
1065-3058

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## Abstract When health effects can be valued in monetary terms, as in cost–benefit analysis, they should be discounted at the same rate as costs. If health effects are measured in quantities (e.g. quality adjusted life years) as in cost‐effectiveness analysis (CEA) and the value of health effects

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## SUMMARY Nord (2011) criticizes standard arguments which assert that consistency requires that future health benefits must be discounted at the same rate as future costs in cost‐effectiveness analysis (CEA). He suggests these arguments are misguided because they require transitivity of preference

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Using a simple societal utility function-giving equal weight to current and future generations -it is concluded that costs need to be discounted on the basis of the expected increase in income and the marginal utility of consumption, and that effects need to be discounted on the basis of the expecte