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Private versus social opportunity cost of time: Valuing time in the demand for health care
Author(s) -
Torgerson D. J.,
Donaldson C.,
Reid D. M.
Publication year - 1994
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.4730030304
Subject(s) - opportunity cost , health care , value of time , economics , public economics , value (mathematics) , social cost , business , actuarial science , microeconomics , travel time , economic growth , computer science , machine learning , transport engineering , engineering
In this paper we examine whether the current method of valuing time within economic appraisals is appropriate. The cost to society of time taken to use health care may differ from the private opportunity cost of such time. However, demand for health care may be affected by the private opportunity time cost and not by the value of time to society. In this paper we show that the private opportunity cost of time is a better predictor of demand for a screening service than the societal approach. It is important, therefore, to use the private opportunity cost of time when assessing the demand for, and impact of, a health care intervention.