Scandinavian Working Papers in Economics

Karlstad University Working Papers in Economics,
Karlstad University, Department of Economics

No 2: The Willingness to Pay for a QALY - Results based on value of statistical life estimates in Sweden

Mikael Svensson () and Lars Hultkrantz ()
Additional contact information
Mikael Svensson: Dept. of Economics, Postal: Dept of Economics, Karlstad University, Universitetsgatan 1, SE 651 88 Karlstad, Sweden
Lars Hultkrantz: Örebro University, Postal: Dept of Economics, Örebro University, SE 701 82 Örebro, Sweden

Abstract: As the use of cost-effectiveness analysis with quality adjusted life years (QALY) as the outcome measure grows in policy use, a major unresolved issue is that of the monetary value to place on a QALY. This paper addresses this issue by estimating and discussing willingness to pay (WTP) estimates for a QALY in Sweden This paper uses all published estimates of the value of a statistical life since the year 2000, based on a Swedish population, to implicitly derive the WTP for a QALY. Based on 16 recently published estimates of the value of a statistical life (year 2000 or later) in Sweden, 11 papers explicitly stating that they estimate policy values of VSL are used to estimate the WTP for a QALY. Estimates range from 750,000 to 3,200,000 Swedish kronor (approx. €80,000 to €350,000) assuming a discount rate of 3%. Using the current government-recommended estimate of value of a statistical life produces a value of approx. 1.2 million Swedish kronor (€130,000) per QALY. There is significant variance in the WTP for a QALY based on conversions from value of statistical life estimates in Sweden. Still, using a discount rate of 3%, the range of estimates in this paper is higher compared to the current informal “thresholds” as discussed by Swedish government authorities.

Keywords: QALY; Willingness to pay; Value of a statistical life; Contingent Valuation

JEL-codes: D61; H51; I18

18 pages, April 2, 2012

Download statistics

Questions (including download problems) about the papers in this series should be directed to Mikael Svensson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-05 21:29:42.