Benefit-Cost Analysis in Global Health

Forthcoming as Chapter 7 in: Global Health Priority-Setting: Beyond Cost-Effectiveness (O. Norheim et al., eds.), Oxford, UK and New York, NY: Oxford University Press.

21 Pages Posted: 17 Apr 2017

See all articles by Lisa A. Robinson

Lisa A. Robinson

Harvard University, Center for Health Decision Science; Harvard University, Center for Risk Analysis

James K. Hammitt

Harvard University

Date Written: January 2017

Abstract

Decisions on investing in health as well as other policies require deciding how to best allocate available resources - recognizing that using labor, materials, and other resources for one purpose means that they cannot be used for other purposes. Approaches for economic evaluation, including cost-effectiveness analysis and benefit-cost analysis, have in common the overarching goal of providing information on policy impacts, so as to provide an evidence-base for decisions. What distinguishes benefit-cost analysis is its emphasis on explicitly accounting for all significant outcomes (both health and non-health) and on valuing them in monetary units to facilitate comparison. Benefit-cost analysis makes the relative values of different outcomes explicit. As conventionally implemented, benefit-cost analysis does not address the distribution of impacts within a population, but it can be supplemented to do so.

Keywords: benefit-cost analysis, benefit valuation, morbidity risk reduction, mortality risk reduction, value per statistical life

JEL Classification: D61, I18

Suggested Citation

Robinson, Lisa A. and Hammitt, James K., Benefit-Cost Analysis in Global Health (January 2017). Forthcoming as Chapter 7 in: Global Health Priority-Setting: Beyond Cost-Effectiveness (O. Norheim et al., eds.), Oxford, UK and New York, NY: Oxford University Press.. Available at SSRN: https://ssrn.com/abstract=2952014 or http://dx.doi.org/10.2139/ssrn.2952014

Lisa A. Robinson (Contact Author)

Harvard University, Center for Health Decision Science ( email )

718 Huntington Avenue
Harvard T.H. Chan School of Public Health
Boston, MA 02115
United States

HOME PAGE: http://https://www.hsph.harvard.edu/lisa-robinson/

Harvard University, Center for Risk Analysis ( email )

Harvard T.H. Chan School of Public Health
718 Huntington Avenue
Boston, MA 02115
United States

HOME PAGE: http://https://www.hsph.harvard.edu/lisa-robinson/

James K. Hammitt

Harvard University ( email )

718 Huntington Avenue
Boston, MA 02115
United States
617-432-4343 (Phone)
617-432-0190 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
84
Abstract Views
448
rank
292,638
PlumX Metrics