SSE/EFI Working Paper Series in Economics and Finance
No 181:
A Note on Confidence Intervals in CostEffectiveness Analysis
Magnus Tambour ()
, Niklas Zethraeus ()
and Magnus Johannesson ()
Abstract: How to obtain confidence intervals for costeffectiveness
ratios is complicated by the statistical problems to obtain a confidence
interval for a ratio of random variables. Different approaches have been
suggested in the literature, but no consensus has been reached. In this
note we propose an alternative simple solution to this problem. By
multiplying the effectiveness units by the price per effectiveness unit,
both costs and benefits can be expressed in monetary terms and standard
statistical techniques can be used to estimate a confidence interval for
net benefits. This avoids the ratio estimation problem and explicitly
recognizes that the price per effectiveness unit has to be known to provide
costeffectibeness analysis with a useful decision rule.
Keywords: Confidence intervals; Costeffectiveness ratios; Costeffectiveness analysis; Economic evaluation; (follow links to similar papers)
JELCodes: D61; D81; H43; I10; (follow links to similar papers)
8 pages, August 13, 1997
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 This paper is published as:

Tambour, Magnus, Niklas Zethraeus and Magnus Johannesson, (1998), 'A Note on Confidence Intervals in CostEffectiveness Analysis', International Journal of Technology Assessment in Health Care, Vol. 14, No. 3, pages 467471
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