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

Abstract

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

Brent, Robert J, An Implicit Price of a DALY for Use in a Cost-Benefit Analysis of ARVs (August 1, 2011). Applied Economics, Vol. 43, No. 11, 1413-1421, 2011, Available at SSRN: https://ssrn.com/abstract=3240993

Robert J Brent (Contact Author)

Fordham University ( email )

Department of Economics
441 E Fordham Road
Bronx, NY 10458
United States
718 817 4058 (Phone)

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