Working Papers, Department of Economics, Lund University
Value of a QALY and VSI Estimated with the Chained Approach
(), Ulf-G Gerdtham
(), Lars Hultkrantz
() and Ulf Persson
Abstract: The value of a Quality-Adjusted Life-Year (QALY) and the
Value of a Statistical Injury (VSI) are important measures within health
economics and transport economics. Several studies have therefore estimated
people’s WTP for these estimates, but most results show problems with scale
insensitivity. The Chained Approach (CA) is a method developed to reduce
this problem. The objective of this study was to estimate the value of a
QALY and VSI in the context of non-fatal road traffic accidents using CA.
Data was collected from a total of 800 individuals in the Swedish adult
general population using two web-based questionnaires. The result showed
evidence of scale sensitivity both within and between samples. The value of
a QALY based on trimmed individual estimates where close to constant at
€300,000 irrespective of the type and size of the QALY gain. The study
shows promising results for using the original CA to estimate the value of
a QALY and VSI. It also supports the use of a constant value of a QALY, but
at a higher level than what is currently applied by HTA’s.
Keywords: contingent valuation; chained approach; scale sensitivity; quality-adjusted life-years; willingness-to-pay; (follow links to similar papers)
JEL-Codes: D61; D80; I18; J17; (follow links to similar papers)
35 pages, December 13, 2016
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