Abstract
This paper addresses the question of how willingness to pay (WTP) values in health care evaluation can be used by policy makers. The way in which WTP values are used depends on from whom values are elicited and whether the good concerned is privately-financed or publicly-financed through taxation. Thus, four possible uses of WTP values are identified. The focus is on the two uses which arise in the publicly-financed situation. 'Conventional' use of WTP values, where the decision as to whether or not to provide a service depends upon whether or not WTP values are greater than total cost, applies only in the privately-financed, and not publicly-financed situations. The situations with publicly-financed goods are more complex. The use of WTP values for publicly-financed goods is justified and illustrated.
Original language | English |
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Pages (from-to) | 2015-2021 |
Number of pages | 7 |
Journal | Applied Economics |
Volume | 32 |
Issue number | 15 |
DOIs | |
Publication status | Published - 1 Dec 2000 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics