A guide to economic evaluation: Methods for cost-effectiveness analysis of person-level data


  • Jeffrey S. Hoch,

    Corresponding author
    1. Centre for Research on Inner City Health and St. Michael's Hospital, Toronto, and the Department of Health Policy, Management and Evaluation, University of Toronto, Ontario, Canada
    • Centre for Research on Inner City Health, 30 Bond Street, Toronto, Ontario M5B 1W8, Canada
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  • Mark W. Smith

    1. Health Economics Resource Center, U.S. Department of Veterans Affairs, Menlo Park, CA, and the Center for Primary Care and Outcomes Research, Stanford University, Stanford, CA
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The authors introduce economic evaluation with particular attention to cost-effectiveness analysis. They begin by establishing why health care decisions should be guided by economics. They then explore different types of economic evaluations. To illustrate how to conduct and evaluate a cost-effectiveness analysis, a hypothetical study about the treatment of posttraumatic stress disorder with psychotherapy versus pharmacotherapy is considered. The authors conclude with recommendations for increasing the strength and relevance of economic evaluations.