Work

Discounting in economic evaluations: stepping forward towards optimal decision rules

Year: 2006

Type: article

Abstract: The National Institute for Clinical Excellence has recently changed its guidelines on discounting costs and effects in economic evaluations. In common with most other regulatory bodies it now requires that health effects should be discounted at the same rate as costs. We show that the guideline leads to sub-optimal decisions because it fails to account for the changing value of health. NICE (and other regulatory bodies) should either use differential discounting or stipulate how the changing value of health should otherwise be dealt with. We also show how binding health service budget constraints should be incorporated in evaluations.

Source: Health Economics

DOI: 10.1002/hec.1168

Authors: Hugh Gravelle, Werner Brouwer, Louis Niessen, Maarten Postma, Frans Rutten

Institutions: University of York, Erasmus MC, Erasmus University Rotterdam, University of Groningen

Language: English

Topic: Health Systems, Economic Evaluations, Quality of Life

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: bronze

OpenAlex ID: W2129378691

FWCI: 19.13

Cites: 13

Cited by: 107

Related to: 10