Life satisfaction, QALYs, and the monetary value of health

L Huang; P Frijters; K Dalziel; P Clarke

Journal article

Life satisfaction, QALYs, and the monetary value of health

L Huang, P Frijters, K Dalziel, P Clarke

Social Science and Medicine | PERGAMON-ELSEVIER SCIENCE LTD | Published : 2018

DOI: 10.1016/j.socscimed.2018.06.009

Abstract

The monetary value of a quality-adjusted life-year (QALY) is frequently used to assess the benefits of health interventions and inform funding decisions. However, there is little consensus on methods for the estimation of this monetary value. In this study, we use life satisfaction as an indicator of ‘experienced utility’, and estimate the dollar equivalent value of a QALY using a fixed effect model with instrumental variable estimators. Using a nationally-representative longitudinal survey including 28,347 individuals followed during 2002–2015 in Australia, we estimate that individual's willingness to pay for one QALY is approximately A$42,000-A$67,000, and the willingness to pay fo..

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University of Melbourne Researchers

Li Huang Author

Kim Dalziel Author

Philip Clarke Author

Related Projects (1)

ECONOMIC EVALUATION OF POLICIES TO MANAGE AND PREVENT CARDIOVASCULAR DISEASE &AMP; DIABETES IN AUSTRALIA

This Research Fellowship will use health economics to deliver health system impact. It will focus on: (i) mechanisms for setting prices for ..

Grants

Awarded by National Health and Medical Research Council

Funding Acknowledgements

Appropriate approval was obtained from the Department of Social Services (Australia) to access the publicly available, de-identified longitudinal dataset. There are no conflicts of interest. We thank the editors and two anonymous reviewers for their valuable suggestions. Philip Clarke is funded by a National Health and Medical Research Council Senior Research Fellowship (APP1079621).