Methodological Research
Valuing the benefits of health and health care in monetary terms
In recent years there has been renewed interest in using cost–benefit analysis as a means of evaluating health care goods and services. Under this approach, both a project’s benefits and costs are measured in monetary terms. The major challenge for researchers wishing to apply this approach is to develop valid and reliable methods by which to measure the benefits of health care.
There is ongoing research into methods that can be used for cost-benefit analysis including the travel cost method, which indirectly estimates the benefits by observing demand at different distances from a health care facility; and (ii) the contingent valuation method, which estimates the benefits directly by asking individuals to state their preferences for health care. Both of these methods are consistent with the theoretically correct definition of benefits, which measures them in terms of an individual’s willingness to pay.
The focus of current research is to contribute to a new book on the application of cost-benefit analysis to health care.
Researchers Involved
Selected Publications
Clarke P.M., “Cost-benefit analysis and mammographic screening: A travel cost approach”, Journal of Health Economics, Vol 17, pp. 767-787, 1998.
Clarke P.M., “Valuing the benefits of mobile mammographic screening units using the contingent valuation method”, Applied Economics, Vol 32, pp. 1647-1655, 2000.
Clarke PM., “Testing the convergent validity of the contingent valuation and travel cost methods in valuing the benefits of health care”, Health Economics, Vol 11, pp.117-127, 2002.