EQUIVALENT INCOME AND FAIR EVALUATION OF HEALTH CARE

Authors


Correspondence to: CORE, Université catholique de Louvain, Voie du Roman Pays 34, 1348 Louvain-la-Neuve, Belgium. E-mail: erik.schokkaert@econ.kuleuven.be

ABSTRACT

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.

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