Karlstad University Working Papers in Economics
The Willingness to Pay for a QALY: a Review of the Empirical Literature
() and Mikael Svensson
Abstract: There has been a rapid increase in the use of
cost-effectiveness analysis, with Quality Adjusted Life Years (QALYs) as an
outcome measure, in evaluating both medical technologies and public health
interventions. Alongside, there is a growing literature on the monetary
value of a QALY based on estimates of the willingness to pay (WTP). This
paper conducts a review of the literature on the WTP for a QALY. In total
24 studies containing 383 unique estimates of the WTP for a QALY are
identified. Trimmed mean and median estimates amount to 74,159 and 24,226
Euros (2010 price level), respectively. In regression analyses the results
indicate that the WTP for a QALY is significantly higher if the QALY gain
comes from life extension rather than quality of life improvements. The
results also show that the WTP for a QALY is dependent on the size of the
QALY gain valued.
Keywords: QALY; Willingness to pay; Literature Review; (follow links to similar papers)
JEL-Codes: D61; H51; I18; (follow links to similar papers)
29 pages, July 28, 2014
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- This paper is forthcoming as:
Ryen, Linda and Mikael Svensson, 'The Willingness to Pay for a QALY: a Review of the Empirical Literature', Health Economics.
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