Private versus social opportunity cost of time: Valuing time in the demand for health care
✍ Scribed by D. J. Torgerson; C. Donaldson; D. M. Reid
- Publisher
- John Wiley and Sons
- Year
- 1994
- Tongue
- English
- Weight
- 549 KB
- Volume
- 3
- Category
- Article
- ISSN
- 1057-9230
No coin nor oath required. For personal study only.
✦ Synopsis
In this paper we examine whether the current method of valuing time within economic appraisals is appropriate. The cost to society of time taken to use health care may differ from the private opportunity cost of such time. However, demand for health care may be affected by the private opportunity time cost and not by the value of time to society. In this paper we show that the private opportunity cost of time is a better predictor of demand for a screening service than the societal approach. It is important, therefore, to use the private opportunity cost of time when assessing the demand for, and impact of, a health care intervention. KEY woms-Value of time, health care, demand, social cost, screening, private cost.