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A Comparison of Cost-Benefit and Cost-Effectiveness Analysis in Practice: Divergent Policy Practices in Sweden
Örebro University, Örebro University School of Business. Health Metrics, The Sahlgrenska Academy, University of Gothenburg, Gothenburg, Sweden.ORCID iD: 0000-0003-1113-7478
Örebro University, Örebro University School of Business. (Nationalekonomi)ORCID iD: 0000-0003-1172-1076
2017 (English)In: Nordic Journal of Health Economics, ISSN 1892-9729, E-ISSN 1892-9710, Vol. 5, no 2, p. 41-53Article in journal (Refereed) Published
Abstract [en]

This paper compares the implementation of the two economic evaluation methods Cost-Effectiveness/Utility (CEA/CUA) and Cost-Benefit Analysis (CBA) as tools for allocation of national public funds in the health and transport sector in Sweden, respectively. We compare the recommended values for important economic parameters such as the social discount rate, the marginal cost of public funds, and the explicit and implicit valuation of health, and document a number of substantial and unexplained differences in implementation. Such differences are problematic considering that the increasing use of economic evaluations to guide policy decisions also has implied an overlap of application areas. We conclude with a discussion on the need of a harmonized procedure for economic evaluations in the public sector in order to reduce the risk of inefficient allocations purely due to different applications of the methods.

Place, publisher, year, edition, pages
University of Oslo , 2017. Vol. 5, no 2, p. 41-53
Keywords [en]
Cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis, public policy
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-64433OAI: oai:DiVA.org:oru-64433DiVA, id: diva2:1176031
Available from: 2018-01-19 Created: 2018-01-19 Last updated: 2018-09-12Bibliographically approved

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A Comparison of Cost-Benefit and Cost-Effectiveness Analysis in Practice: Divergent Policy Practices in Sweden

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Svensson, MikaelHultkrantz, Lars

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Citation style
  • apa
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Output format
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