Scandinavian Working Papers in Economics
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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 323:
On the interpretation of cost-effectiveness acceptability curves

Mickael Löthgren () and Niklas Zethraeus ()

Abstract: This paper discusses the definition, computation and interpretation of cost-effectiveness acceptability curves. A formal definition of the cost-effectiveness acceptability curve based on the net benefit approach is provided. The curve can be computed using parametric or non-parametric techniques and for both computational approaches we establish a formal relation between the cost-effectiveness acceptability curve and statistical inference based on confidence intervals and P-values in cost-effectiveness analysis.

Keywords: Cost-effectiveness analysis; Cost-effectivenesss acceptability curve; net benefit approach; hypothesis testing; confidence intervals; (follow links to similar papers)

JEL-Codes: I10; (follow links to similar papers)

13 pages, June 11, 1999, Revised May 2, 2000

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This paper is published as:
Löthgren, Mickael and Niklas Zethraeus, (2000), 'Definition, Interpretation and Calculation of Cost-Effectiveness Acceptability Curves', Health Economics, Vol. 9, pages 623-630

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