Health Years in Total (HYT)

Standard quality approach compares the difference in QALYs which is a function of survival and quality of life during each survival period.  Consider the comparison of treatments A and B, where treatment A is the novel treatment and treatment B is the standard of care. Under the QALY based approach this is calculated as Where…

CHEERS 2022

How should you report the methodology, results and limitations of your economic model? One of the most commonly used approaches is the Consolidated Health Economic Evaluation Reporting Standards (CHEERS) checklist. CHEERS was developed in 2013 (Husereau et al. 2013) and a new version has been developed this year (Husereau et al. 2022). Below are the…

Give now

Let’s say that you’re a billionaire. Should you donate to charity now or wait until you die and then donate? If you believe in Effective Altruism, this depends on whether the value of your donation is higher now or in the future. One could argue that you should donate now since in the future–assuming progress–people…

2021 Nobel Prize in Economics goes to Card, Angrist and Imbens

The 2021 Nobel Prize in Economics goes to David Card, Joshua Angrist and Guido Imbens due to their work on “natural experiments” and how this econometric technique can inform important research questions in labor economics. From the Nobel Prize press release: Using natural experiments, David Card has analysed the labour market effects of minimum wages, immigration and…

How happy are you?

This question seems simple, but answering the key factors that impact your happiness is complex. Is happiness based on your personal situation (e.g., family, job, income, health) measured in an absolute sense or relative to others? If measured in a relative sense, what reference point is used? One approach to measuring your life satisfaction is…

Conversations with Tyler: David Cutler

Tyler Cowen has an interesting interview with Harvard health economist David Cutler speaking about (what else?) health economics. Below is an excerpt: CUTLER: Everything that we know in healthcare is that people have difficulty choosing on the basis of price and quality. It goes back a little bit to some of the behavioral issues that…