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Health-related externalities: Evidence from a choice experiment

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  • Hurley, Jeremiah
  • Mentzakis, Emmanouil

Abstract

Health-related external benefits are of potentially large importance for public policy. This paper investigates health-related external benefits using a stated-preference discrete-choice experiment framed in a health care context and including choice scenarios defined by six attributes related to a recipient and the recipient's condition: communicability, severity, medical necessity, relationship to respondent, location, and amount of contribution requested. Subjects also completed a set of own-treatment scenarios and a values-orientation instrument. We find evidence of substantial health-related external benefits that vary as expected with the scenario attributes and subjects’ value orientations. The results are consistent with a number of hypotheses offered by the general theoretical analysis of health-related externalities and the analysis of externalities specific to health care.

Suggested Citation

  • Hurley, Jeremiah & Mentzakis, Emmanouil, 2013. "Health-related externalities: Evidence from a choice experiment," Journal of Health Economics, Elsevier, vol. 32(4), pages 671-681.
    • Handle: RePEc:eee:jhecon:v:32:y:2013:i:4:p:671-681
    DOI: 10.1016/j.jhealeco.2013.03.005
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    2. Mentzakis, Emmanouil & Mestelman, Stuart, 2013. "Hypothetical bias in value orientations ring games," Economics Letters, Elsevier, vol. 120(3), pages 562-565.
    3. Mark C. Long, 2022. "Altruism and the Statistical Value of Human Life for Policy and Regulation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 341-355, February.
    4. Lars Thiel, 2014. "Illness and Health Satisfaction: The Role of Relative Comparisons," SOEPpapers on Multidisciplinary Panel Data Research 695, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Menegaki, Angeliki, N. & Olsen, Søren Bøye & Tsagarakis, Konstantinos P., 2016. "Towards a common standard – A reporting checklist for web-based stated preference valuation surveys and a critique for mode surveys," Journal of choice modelling, Elsevier, vol. 18(C), pages 18-50.
    6. Hareth Al‐Janabi & Job Van Exel & Werner Brouwer & Caroline Trotter & Linda Glennie & Laurie Hannigan & Joanna Coast, 2016. "Measuring Health Spillovers for Economic Evaluation: A Case Study in Meningitis," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1529-1544, December.
    7. Vikas Soekhai & Esther W. Bekker-Grob & Alan R. Ellis & Caroline M. Vass, 2019. "Discrete Choice Experiments in Health Economics: Past, Present and Future," PharmacoEconomics, Springer, vol. 37(2), pages 201-226, February.
    8. SeEun Jung & Sang-Hyun Kim, 2020. "Managing the Public Health Risks in the Time of COVID-19," Working papers 2020rwp-181, Yonsei University, Yonsei Economics Research Institute.
    9. SeEun Jung & Sang-Hyun Kim, 2022. "Understanding Precautionary Behavior in the Time of COVID-19 (Covid-19 Special Issue)," Korean Economic Review, Korean Economic Association, vol. 38, pages 251-283.

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    More about this item

    Keywords

    Externalities; Altruism; Health care financing; Program evaluation;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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