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

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 ()

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; (follow links to similar papers)

JEL-Codes: D61; I10; I12; (follow links to similar papers)

12 pages, April 25, 2000

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