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Value of a QALY and VSI Estimated with the Chained Approach

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Abstract

The value of a Quality-Adjusted Life-Year (QALY) and the Value of a Statistical Injury (VSI) are important measures within health economics and transport economics. Several studies have therefore estimated people’s WTP for these estimates, but most results show problems with scale insensitivity. The Chained Approach (CA) is a method developed to reduce this problem. The objective of this study was to estimate the value of a QALY and VSI in the context of non-fatal road traffic accidents using CA. Data was collected from a total of 800 individuals in the Swedish adult general population using two web-based questionnaires. The result showed evidence of scale sensitivity both within and between samples. The value of a QALY based on trimmed individual estimates where close to constant at €300,000 irrespective of the type and size of the QALY gain. The study shows promising results for using the original CA to estimate the value of a QALY and VSI. It also supports the use of a constant value of a QALY, but at a higher level than what is currently applied by HTA’s.

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  • Olofsson, Sara & Gerdtham , Ulf-G & Hultkrantz , Lars & Persson , Ulf, 2016. "Value of a QALY and VSI Estimated with the Chained Approach," Working Papers 2016:33, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2016_033
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    Cited by:

    1. Vimefall Elin & Persson Mattias & Olofsson Sara & Hultkrantz Lars, 2022. "Is prevention of suicide worth less? A comparison of the value per statistical life," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 261-275, March.
    2. Attema, Arthur & Frasch, Jona & L'Haridon, Olivier, 2020. "Multivariate risk preferences in the QALY model," MPRA Paper 103339, University Library of Munich, Germany.
    3. Christian R. C. Kouakou & Thomas G. Poder, 2022. "Willingness to pay for a quality-adjusted life year: a systematic review with meta-regression," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 277-299, March.
    4. Jonathan Siverskog, 2023. "Making the rules make sense: valuation of constrained resources," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(3), pages 479-481, April.
    5. Fernando-Ignacio Sánchez-Martínez & Jorge-Eduardo Martínez-Pérez & José-María Abellán-Perpiñán & José-Luis Pinto-Prades, 2021. "The value of statistical life in the context of road safety: new evidence on the contingent valuation/standard gamble chained approach," Journal of Risk and Uncertainty, Springer, vol. 63(2), pages 203-228, October.

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    Keywords

    contingent valuation; chained approach; scale sensitivity; quality-adjusted life-years; willingness-to-pay;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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