Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 379: On the equivalence of the net benefit and the Fieller's methods for statistical inference in cost-effectiveness analysis

Niklas Zethraeus () and Mickael Löthgren ()
Additional contact information
Niklas Zethraeus: Dept. of Economics, Stockholm School of Economics, Postal: P.O. Box 6501, SE-113 83 Stockholm, Sweden
Mickael Löthgren: AstraZeneca R&D Södertälje, Postal: Health Economics & Outcomes Research, SE-151 85 Södertälje, Sweden

Abstract: This paper shows that there exists a close relation between the net benefit and Fieller's methods for calculation of confidence intervals and performing hypothesis testing in cost-effectiveness analysis. The prices at which the net benefit confidence interval limits are equal to zero are identical to the Fieller's confidence interval limits for the incremental cost-effectiveness ratio.

Keywords: Confidence intervals; cost-effectiveness analysis; Fieller's method; hypothesis testing; net benefit

JEL-codes: D61; I10; I12

12 pages, April 25, 2000

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