An Implicit Price of a DALY for Use in a Cost-Benefit Analysis of ARVs
24 Pages Posted: 29 Aug 2018
Date Written: August 1, 2011
This paper uses the revealed preference approach to estimate the price for a Disability Adjusted Life Year (DALY) implied by grant decisions by the Global Fund for AIDS, Tuberculosis and Malaria (GFATM). A Cost-Benefit criterion is used that requires the DALY price exceed the Cost-Effectiveness ratio. The estimated price was $6,300 for a DALY saved from any disease, but it was $11,900 from a DALY saved specifically from HIV/AIDS. Estimates of the Cost-effectiveness ratios of Antiretroviral Drug Therapies (ARVs) in the literature were examined. At the DALY prices, implicit by GFATM decisions, ARVs would be socially worthwhile.
Keywords: Implicit Price of a DALY; Cost-Benefit Analysis; ARVs
JEL Classification: D61; H51
Suggested Citation: Suggested Citation