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Revealed preference valuation compared to contingent valuation: radon‐induced lung cancer prevention
Author(s) -
Kennedy Christine A.
Publication year - 2002
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.724
Subject(s) - contingent valuation , valuation (finance) , revealed preference , economics , actuarial science , confidence interval , willingness to pay , econometrics , medicine , microeconomics , finance
This paper explores and compares two tools of economic valuation, revealed preference and contingent valuation, with the purpose of ultimately informing the use of two methods of economic evaluation, CEA and CBA. The valuation methods are applied to empirical data for radon‐induced lung cancer prevention. However, only the single bound CV and the subjective revealed preference estimates have overlapping confidence intervals, indicating that they do have external validity as assessed by convergent validity. The revealed preference subjective risk valuation was (£180 (£144, £247)) and the single bounded contingent valuation estimate was (£269 (£201, £343)). Copyright © 2002 John Wiley & Sons, Ltd.