eprintid: 22767
rev_number: 32
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/02/27/67
datestamp: 2017-01-24 10:34:29
lastmod: 2023-09-04 08:23:00
status_changed: 2018-03-26 08:46:19
type: article
succeeds: 19751
metadata_visibility: show
creators_name: Rheinberger, Christoph M.
creators_name: Herrera Araujo, Daniel Andres
creators_name: Hammitt, James K.
creators_idrefppn: 241586941
creators_idrefppn: 192870602
creators_idrefppn: 183451279
creators_affiliation: Harvard University (Center for Risk Analysis), USA ; Toulouse School of Economics, France
title: The value of disease prevention vs treatment
ispublished: pub
subjects: subjects_ECO
abstract: We present an integrated valuation model for diseases that are life-threatening. The model extends the standard one-period value-per-statistical-life model to three health prospects: healthy, ill, and dead. We derive willingness-to-pay values for prevention efforts that reduce a disease's incidence rate as well as for treatments that lower the corresponding health deterioration and mortality rates. We find that the demand value of prevention always exceeds that of treatment. People often overweight small risks and underweight large ones. We use the rank dependent utility framework to explore how the demand for prevention and treatment alters when people evaluate probabilities in a non-linear manner. For incidence and mortality rates associated with common types of cancers, the inverse-S shaped probability weighting found in experimental studies leads to a significant increase in the demand values of both treatment and prevention.
date: 2016-12
date_type: published
publisher: Elsevier
id_number: 10.1016/j.jhealeco.2016.08.005
official_url: http://tse-fr.eu/pub/31394
faculty: tse
divisions: tse
keywords: Health risk valuation
keywords: Chronic disease
keywords: Willingness-to-pay
keywords: Probability weighting
keywords: Value of prevention
language: en
has_fulltext: TRUE
doi: 10.1016/j.jhealeco.2016.08.005
subjectsJEL: JEL_D11
subjectsJEL: JEL_D81
subjectsJEL: JEL_I10
view_date_year: 2016
full_text_status: public
publication: Journal of Health Economics
volume: 50
pagerange: 247-255
refereed: TRUE
issn: 0167-6296
oai_identifier: oai:tse-fr.eu:31394
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oai_lastmod: 2017-11-09T10:05:11Z
oai_set: tse
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site: ut1
citation:   Rheinberger, Christoph M. <https://www.idref.fr/241586941>, Herrera Araujo, Daniel Andres <https://www.idref.fr/192870602> and Hammitt, James K. <https://www.idref.fr/183451279>  (2016) The value of disease prevention vs treatment.    Journal of Health Economics, 50.  pp. 247-255.       
document_url: https://publications.ut-capitole.fr/id/eprint/22767/1/wp_tse_628.pdf