Chapter 7: Further issues of cost-effectiveness analysis
Although economists are unanimous in adopting discounting for costs, there is no such widespread agreement in the health care field for discounting effects. If costs are discounted and effects are left undiscounted, obviously C/E ratios would be radically altered. Even when discounting of effects is accepted, not everyone agrees that the discount rate on effects should be the same as that used for costs. The second section addresses these issues. From there we proceed to a second main theme, that is, how do CEAs need to be conducted and interpreted when the values that we use for C and E are average ones that may come from a sample with a large amount of sampling variation and hence great uncertainty? Our first task is to cover some background issues concerning these two themes.
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