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Willingness to Pay and Willingness to Accept Evaluation of Effectiveness and Equity of Health Programs

Author: LiZuoZuo
Tutor: FanLiMing
School: Shandong University
Course: Finance
Keywords: Willingness to pay Willingness to accept Effectiveness Equity Cost-effectiveness analysis
CLC: F224.5
Type: Master's thesis
Year: 2011
Downloads: 34
Quote: 0
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Abstract


Nowadays, Chinese government is realizing the importance of the social welfare and the issues which are important to the citizens’daily life. The effectiveness and equity of the social welfare are being considered more and more carefully by the decision-makers and the public. And one of the important social issues is the medical and health programs. In the background of taking the medical and health innovation, the evaluation of the health programs taking the consideration of both effectiveness and equity is significant. In economics, health program is a kind of good, which can be divided into private good and public good. And private good can be provided automatically by the market while public good should be evaluated by the decision-makers before making the decision.This thesis discusses the effectiveness and equity in the evaluation of health programs. All the health programs existed can be divided into private good and public good. As the optimality condition and the clearing market are different for private good and public good, the evaluation methods are different. When the health program is private good, the price is decided by the market mechanism and the equity is not a question. While when the health program is club good or pure public good, the evaluation should consider the willingness to pay and willingness to accept in the cost-effectiveness analysis. And when taking the equity into consideration, there would be a kink of threshold in the adjusted cost-effectiveness plane, which means that the willingness to accept would be greater than the willingness to pay.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods > Cost-benefit analysis (cost - benefit analysis )
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