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The Economic Value Of Preventing Respiratory And Cardiovascular Hospitalizations

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  • LAURAINE G. CHESTNUT
  • MARK A. THAYER
  • JEFFREY K. LAZO
  • STEPHEN K. VAN DEN EEDEN

Abstract

This article provides estimates of the economic benefits of reducing respiratory and cardiovascular hospitalizations based on cost of illness and willingness to pay. The willingness‐to‐pay estimates indicate that individuals value prevention of a five‐day hospitalization event at an average of approximately $2,400. Average total costs of illness per hospitalization are $22,000–39,000. A comprehensive cost‐of‐illness estimate that includes value of time losses for the hospitalization and at‐home recovery periods provides a close approximation of total costs borne by third parties plus individual willingness to pay. Both exceed previous cost‐of‐illness estimates by about 10–25%. (JEL D61, I18, Q25)

Suggested Citation

  • Lauraine G. Chestnut & Mark A. Thayer & Jeffrey K. Lazo & Stephen K. Van Den Eeden, 2006. "The Economic Value Of Preventing Respiratory And Cardiovascular Hospitalizations," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 127-143, January.
    • Handle: RePEc:bla:coecpo:v:24:y:2006:i:1:p:127-143
    DOI: 10.1093/cep/byj007
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    References listed on IDEAS

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    1. Harrington, Winston & Portney, Paul R., 1987. "Valuing the benefits of health and safety regulation," Journal of Urban Economics, Elsevier, vol. 22(1), pages 101-112, July.
    2. F. Reed Johnson & Melissa Ruby Banzhaf & William H. Desvousges, 2000. "Willingness to pay for improved respiratory and cardiovascular health: a multiple‐format, stated‐preference approach," Health Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 295-317, June.
    3. Anna Alberini & Alan Krupnick, 2000. "Cost-of-Illness and Willingness-to-Pay Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan," Land Economics, University of Wisconsin Press, vol. 76(1), pages 37-53.
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    Cited by:

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    3. Brandt, Sylvia J. & Lavin, Felipe Vasquez & Hanemann, W. Michael, 2008. "Designing contingent valuation scenarios for environmental health: The case of childhood asthma," CUDARE Working Papers 47077, University of California, Berkeley, Department of Agricultural and Resource Economics.
    4. Alberini, Anna & Chiabai, Aline, 2007. "Urban environmental health and sensitive populations: How much are the Italians willing to pay to reduce their risks?," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 239-258, March.
    5. Leslie Richardson & John B. Loomis & Patricia A. Champ, 2013. "Valuing Morbidity from Wildfire Smoke Exposure: A Comparison of Revealed and Stated Preference Techniques," Land Economics, University of Wisconsin Press, vol. 89(1), pages 76-100.

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    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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