Premium
EQUIVALENT INCOME AND FAIR EVALUATION OF HEALTH CARE
Author(s) -
Fleurbaey Marc,
Luchini Stéphane,
Muller Christophe,
Schokkaert Erik
Publication year - 2013
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.2859
Subject(s) - welfarism , economics , health economics , health care , actuarial science , public economics , econometrics , welfare , economic growth , market economy
We argue that the economic evaluation of health care (cost–benefit analysis) should respect individual preferences and should incorporate distributional considerations. Relying on individual preferences does not imply subjective welfarism. We propose a particular non‐welfarist approach, based on the concept of equivalent income, and show how it helps to define distributional weights. We illustrate the feasibility of our approach with empirical results from a pilot survey. Copyright © 2012 John Wiley & Sons, Ltd.