False Alarm? Estimating the Marginal Value of Health Signals

54 Pages Posted: 24 May 2017 Last revised: 23 Dec 2022

See all articles by Toshiaki Iizuka

Toshiaki Iizuka

University of Tokyo

Katsuhiko Nishiyama

University of North Carolina at Chapel Hill

Brian Chen

University of South Carolina

Karen Eggleston

Stanford University - Walter H. Shorenstein Asia-Pacific Research Center (APARC)

Date Written: May 2017

Abstract

We investigate the marginal value of information in the context of health signals after checkups. Although underlying health status is similar for individuals just below and above a clinical threshold, treatments differ according to the checkup signals they receive. For the general population, whereas health warnings about diabetes increase healthcare utilization, health outcomes do not improve at the threshold. However, among high-risk individuals, outcomes do improve, and improved health is worth its cost. These results indicate that the marginal value of health information depends on setting appropriate thresholds for health warnings and targeting individuals most likely to benefit from follow-up medical care.

Suggested Citation

Iizuka, Toshiaki and Nishiyama, Katsuhiko and Chen, Brian and Eggleston, Karen, False Alarm? Estimating the Marginal Value of Health Signals (May 2017). NBER Working Paper No. w23413, Available at SSRN: https://ssrn.com/abstract=2971790

Toshiaki Iizuka (Contact Author)

University of Tokyo ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

Katsuhiko Nishiyama

University of North Carolina at Chapel Hill ( email )

United States

Brian Chen

University of South Carolina ( email )

701 Main Street
Columbia, SC 29208
United States

Karen Eggleston

Stanford University - Walter H. Shorenstein Asia-Pacific Research Center (APARC) ( email )

Stanford, CA 94305
United States

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