Diminishing Willingness to Pay per Quality-Adjusted Life Year: Valuing Acute Foodborne Illness

Risk Analysis

Volumn 31, Issue 9, 2011, Pages 1363-1380

  Haninger, Kevin ^a,b   Hammitt, James K ^b,c  

^a U S ENVIRONMENTAL PROTECTION AGENCY   (United States)

^b HARVARD CENTER FOR RISK ANALYSIS   (United States)

^c TOULOUSE SCHOOL OF ECONOMICS   (France)

Author keywords

Foodborne illness; Health risk; Quality adjusted life year; Stated preference; Willingness to pay

Indexed keywords

ADULT POPULATIONS; CONDITIONAL PROBABILITIES; CONSTANT RATE; ECONOMIC THEORIES; FOOD-BORNE ILLNESS; HEALTH-RELATED QUALITY OF LIVES; MONETARY VALUE; QUALITY-ADJUSTED LIFE YEAR; QUALITY-ADJUSTED LIFE YEARS; STATED PREFERENCES; WILLINGNESS TO PAY;

ECONOMICS; HEALTH; PROBABILITY; RISK PERCEPTION; SURVEYS;

HEALTH RISKS;

DISEASE SEVERITY; ECONOMIC THEORY; FOOD QUALITY; HEALTH RISK; MORTALITY RISK; PREFERENCE BEHAVIOR; PROBABILITY; PUBLIC HEALTH; RISK ASSESSMENT; SOCIOECONOMIC SURVEY; WILLINGNESS TO PAY;

ARTICLE; ECONOMICS; FEMALE; FOOD POISONING; HUMAN; INFORMATION PROCESSING; MALE; PATHOPHYSIOLOGY; QUALITY ADJUSTED LIFE YEAR; THEORETICAL MODEL;

DATA COLLECTION; FEMALE; FOODBORNE DISEASES; HUMANS; MALE; MODELS, THEORETICAL; QUALITY-ADJUSTED LIFE YEARS;

UNITED STATES;

EID: 80053384515     PISSN: 02724332     EISSN: 15396924     Source Type: Journal    
DOI: 10.1111/j.1539-6924.2011.01617.x     Document Type: Article

References (59)

1. Johannesson M. The relationship between cost-effectiveness analysis and cost-benefit analysis. Social Science and Medicine, 1995; 41:483-489.
2. Garber AM, Phelps CE. Economic foundations of cost-effectiveness analysis. Journal of Health Economics, 1997; 16:1-31.
3. Hammitt JK. QALYs versus WTP. Risk Analysis, 2002; 22(5):985-1001.
4. U.S. Office of Management and Budget. Regulatory Analysis, Washington, DC Office of Information and Regulatory Affairs Circular A-4, September 17, 2003.
5. U.S. Environmental Protection Agency. The Benefits and Costs of the Clean Air Act, 1990 to 2010, Washington, DC EPA 410-R-99-001, 1999.
6. U.S. Environmental Protection Agency. National Primary Drinking Water Regulations: Arsenic and clarifications to compliance and new source contaminants modeling. Federal Register 66(14):6975-6066, January 22, 2001.
7. U.S. Environmental Protection Agency, Office of Water, Economic Analysis for the Final Stage 2 Disinfectants and Disinfection Byproducts Rule. Washington, DC EPA 815-R-05-010, December 2005.
8. Feeny D, Furlong W, Torrance GW, Goldsmith CH, Zhu Z, DePauw S, Denton M, Boyle M. Multiattribute and single-attribute utility functions for the Health Utilities Index Mark 3 System. Medical Care, 2002; 40:113-128.
9. EuroQol Group. EuroQoL-A new facility for the measurement of health-related quality of life. Health Policy, 1990; 16(3):199-208.
10. Hubbell BL. Implementing QALYs in the analysis of air pollution regulations. Environmental and Resource Economics, 2006; 34:365-384.
11. Miller W, Robinson LA, Lawrence RS (eds). Valuing Health for Regulatory Cost-Effectiveness Analysis. Washington, DC National Academies Press, 2006.
12. French MT, Mauskopf JA. A quality-of-life method for estimating the value of avoided morbidity. American Journal of Public Health, 1992; 82:1533-1555.
13. Tolley G, Kenkel D, Fabian R (eds). Valuing Health for Policy: An Economic Approach. Chicago University of Chicago Press, 1994.
14. Robinson LA. How U.S. government agencies value mortality risk reductions. Review of Environmental Economics and Policy, 2007; 1:283-299.
15. Cutler DM, Richardson E. Measuring the health of the U.S. population. Brookings Papers on Economic Activity: Microeconomics, 1997; 97:217-271.
16. Nordhaus WD. The health of nations: The contribution of improved health to living standards. In Murphy KH, Topel RH (eds). Measuring the Gains from Medical Research: An Economic Approach. Chicago University of Chicago Press, 2003.
17. Murphy KM, Topel RH. The value of health and longevity. Journal of Political Economy, 2006; 114:871-904.
18. Johnson FR, Fries EE, Banzhaf HS. Valuing morbidity: An integration of the willingness-to-pay and health-status index literatures. Journal of Health Economics, 1997; 16:641-665.
19. Van Houtven G, Rousu M, Yang J-C, Pringle C, Wagstaff W, DePlatchett J. Valuation of Morbidity Losses: Meta-Analysis of Willingness-to-Pay and Health Status Measures. Research Triangle Park, NC Research Triangle Institute, 2003.
20. O'Brien B, Viramontes JL. Willingness to pay: A valid and reliable measure of health state preference? Medical Decision Making, 1994; 14:289-297.
21. Krabbe PFM, Essink-Bot M, Bonsel GJ. The comparability and reliability of five health-state valuation methods. Social Science and Medicine, 1997; 45:1641-1652.
22. Bala MV, Wood LL, Zarkin GA, Norton EC, Gafni A, O'Brien B. Valuing outcomes in health care: A comparison of willingness to pay and quality-adjusted life years. Journal of Clinical Epidemiology, 1998; 51:667-676.
23. Jones-Lee MW, Loomes G, Philips PR. Valuing the prevention of non-fatal road injuries: Contingent valuation vs. standard gambles. Oxford Economic Papers, 1995; 47:676-695.
24. Kaplan RM, Anderson JP, Ganiats TG. The quality of well-being scale: Rationale for a single quality of life index. In Walker SR, Rosser RM (eds). Quality of Life Assessment: Key Issues in the 1990s. Dordrecht, The Netherlands Kluwer, 1993.
25. Johnson FR, Banzhaf MR, Desvousges WH. Willingness to pay for improved respiratory and cardiovascular health: A multiple-format, stated-preference approach. Health Economics, 2000; 9:295-317.
26. Gyrd-Hansen D. Willingness to pay for a QALY. Health Economics, 2003; 12:1049-1060.
27. Hammitt JK. How Much is a QALY Worth? Admissible Utility Functions for Health and Wealth. Boston, MA Harvard Center for Risk Analysis, 2002.
28. Hanemann MW. Willingness to pay and willingness to accept: How much can they differ? American Economic Review, 1991; 81:635-647.
29. Pliskin JS, Shepard DS, Weinstein MC. Utility functions for life years and health status. Operations Research, 1980; 28:206-224.
30. Bleichrodt H, Wakker P, Johannesson M. Characterizing QALYs by risk neutrality. Journal of Risk and Uncertainty, 1997; 15:107-114.
31. Hammitt JK. Evaluating contingent valuation of environmental health risks: The proportionality test. Association of Environmental and Resource Economists Newsletter, 2000; 20(1):14-19. Reprinted in Stated Preference: What Do We Know? Where Do We Go? (Proceedings). Washington, DC U.S. Environmental Protection Agency Report number EE-0436, 2000.
32. Corso PS, Hammitt JK, Graham JD. Valuing mortality-risk reduction: Using visual aids to improve the validity of contingent valuation. Journal of Risk and Uncertainty, 2001; 23(2):165-184.
33. Tversky A, Kahneman D, Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 1992; 5:297-323.
34. Pratt JW, Zeckhauser RJ. Willingness to pay and the distribution of risk and wealth. Journal of Political Economy, 1996; 104:747-763.
35. Hammitt JK, Graham JD. Willingness to pay for health protection: Inadequate sensitivity to probability? Journal of Risk and Uncertainty, 1999; 18(1):33-62.
36. Viscusi WK. A Bayesian perspective on biases in risk perception. Economic Letters, 1985; 17:59-62.
37. Viscusi WK. Prospective reference theory: Toward an explanation of the paradoxes. Journal of Risk and Uncertainty, 1989; 2:235-263.
38. Andersson H, Svensson M. Cognitive ability and scale bias in the contingent valuation method: An analysis of WTP to reduce mortality risk. Environmental and Resource Economics, 2008; 39:481-495.
39. Leiter AM, Pruckner GJ. Proportionality of willingness to pay to small changes in risk: The impact of attitudinal factors in scope tests. Environmental and Resource Economics, 2009; 42:169-186.
40. Kahneman D, Tversky A. Prospect theory: An analysis of decision under risk. Econometrica, 1979; 47:263-291.
41. Eeckhoudt LR, Hammitt JK. Does risk aversion increase the value of mortality risk? Journal of Environmental Economics and Management, 2004; 47:13-29.
42. Barsky RB, Juster FT, Kimball MS, Shapiro MD. Preference parameters and behavioral heterogeneity: An experimental approach in the health and retirement study. Quarterly Journal of Economics, 1997; 112:537-580.
43. Hammitt JK, Haniger K. Willingness to pay for food safety: Sensitivity to duration and severity of illness. American Journal of Agricultural Economics, 2007; 89:1170-1175.
44. Mead PS, Slutsker L, Dietz V, McCaig LF, Bresee JS, Shapiro C, Griffin PM, Tauxe RV. Food-related illness and death in the United States. Emerging Infectious Diseases, 1999; 5:840-842.
45. Torrance GW. Measurements of health state utilities for economic appraisal. Journal of Health Economics, 1986; 5:1-30.
46. Torrance GW, Feeny DH, Furlong WJ, Barr RD, Zhang Y, Wang Q. Multiattribute utility function for a comprehensive health status classification system: Health Utilities Index Mark 2. Medical Care, 1996; 34:702-722.
47. Hanemann WM, Loomis J, Kanninen B. Statistical efficiency of double-bounded dichotomous choice contingent valuation. American Journal of Agricultural Economics, 1991; 73:1255-1261.
48. Alberini A, Efficiency vs. bias of willingness-to-pay estimates: Bivariate and interval-data models. Journal of Environmental Economics and Management, 1995; 29:169-180.
49. Hammitt JK, Haninger K. Valuing fatal risks to children and adults: Effects of disease, latency, and risk aversion. Journal of Risk and Uncertainty, 2010; 40:57-83.
50. Kahneman D, Tversky A. On the psychology of prediction. Psychology Review, 1973; 80:237-251.
51. Baron J. Biases in the quantitative measurement of values for public decisions. Psychological Bulletin, 1997; 122:72-88.
52. Viscusi WK, Aldy JE. The value of a statistical life: A critical review of market estimates throughout the world. Journal of Risk and Uncertainty, 2003; 27:5-76.
53. Mrozek JR, Taylor LO. What determines the value of life? A meta-analysis. Journal of Policy Analysis and Management, 2002; 21:253-270.
54. Alberini A, Cropper M, Krupnick A, Simon N. Does the value of a statistical life vary with age and health status? Evidence from the US and Canada. Journal of Environmental Economics and Management, 2004; 48:769-792.
55. Alberini A, Kanninen B, Carson RT. Modeling response incentive effects in dichotomous choice contingent valuation data. Land Economics, 1997; 73:309-324.
56. Hirth RA, Chernew ME, Miller E, Fendrick AM, Weissert WG. Willingness to pay for a quality-adjusted life year: In search of a standard. Medical Decision Making, 2000; 20:332-342.
57. Adler M. QALYs and policy evaluation: A new perspective. Yale Journal of Health Policy, Law and Ethics, 2006; 6:1-92.
58. Culyer AJ. The normative economics of health care finance and provision. Oxford Review of Economic Policy, 1989; 5:34-58.
59. Culyer AJ. Commodities, characteristics of commodities, characteristics of people, utilities, and the quality of life. In Baldwin S, Godfrey C, Propper C (eds). Quality of Life: Perspectives and Policies. London Routledge, 1990.