Journal
JOURNAL OF HEALTH ECONOMICS
Volume 24, Issue 4, Pages 751-773Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jhealeco.2004.12.002
Keywords
cost-effectiveness analysis; family; collective model; prostate cancer; externalities
Funding
- NCI NIH HHS [5R01 CA92443-03] Funding Source: Medline
Ask authors/readers for more resources
Medical cost-effectiveness analyses traditionally treat patients as isolated individuals and neglect the effects of improvement in patients' health on the welfare of their family members. We use a model based on a family utility function with altruistic linkages to show that there can be direct and indirect effects on the welfare of all family members. We focus specially on a model of how the spillover effects to the spouse in a two-person family might affect choice of treatments for prostate cancer. We then test the predictions of this model by analyzing treatment choices of prostate cancer patients using the linked SEER-Medicare database. We find that our results are consistent with the model's predictions. We conclude that cost-effectiveness analyses may better reflect the full costs and benefits of medical interventions if they incorporate these family effects. However, concerns about equity present a dilemma for the practice of CEA from the societal perspective. (c) 2005 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available