Thursday, March 20, 2008
Something I Need to go through More Carefully
by Ken Houghton
For some reason, economists seems to prefer the former to the latter. Which is strange, because it is intuitively easier to build a realistic Health Economics model using QALYs and treating insurance premia as an investment than the current standard of treating insurance premia as a "sunk cost" and declaring Moral Hazard at all turns.
A marvelous post from Andrew at Statistical Modeling etc. which evolves in the comments into a discussion of Willingness to Pay (WTP) vs. QALYs.
For some reason, economists seems to prefer the former to the latter. Which is strange, because it is intuitively easier to build a realistic Health Economics model using QALYs and treating insurance premia as an investment than the current standard of treating insurance premia as a "sunk cost" and declaring Moral Hazard at all turns.
Labels: Economics, Health Care, QALYs, Statistics
