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False alarm? Estimating the marginal value of health signals

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  • Iizuka, Toshiaki
  • Nishiyama, Katsuhiko
  • Chen, Brian
  • Eggleston, Karen

Abstract

We investigate the marginal value of information in the context of health signals that people receive after checkups. Although underlying health status is similar for individuals just below and above a clinical threshold, treatments differ according to the checkup signals they receive. For the general population, whereas health warnings about diabetes increase healthcare utilization, health outcomes do not improve. However, among high-risk individuals, outcomes do improve, and improved health is worth its cost. These results indicate that the marginal value of health information depends on setting appropriate thresholds for health warnings and targeting individuals most likely to benefit from follow-up medical care.

Suggested Citation

  • Iizuka, Toshiaki & Nishiyama, Katsuhiko & Chen, Brian & Eggleston, Karen, 2021. "False alarm? Estimating the marginal value of health signals," Journal of Public Economics, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:pubeco:v:195:y:2021:i:c:s0047272721000049
    DOI: 10.1016/j.jpubeco.2021.104368
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    Cited by:

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    2. ZHAO Meng & YIN Ting & SEKIZAWA Yoichi, 2023. "Make Behavioral Changes for a Healthier Liver? Evidence from a liver function test in Japan," Discussion papers 23010, Research Institute of Economy, Trade and Industry (RIETI).
    3. Kim, Hyuncheol Bryant & Lee, Suejin & Lim, Wilfredo, 2017. "Knowing Is Not Half the Battle: Impacts of the National Health Screening Program in Korea," IZA Discussion Papers 10650, Institute of Labor Economics (IZA).
    4. Gaggero, Alessio & Gil, Joan & Jiménez-Rubio, Dolores & Zucchelli, Eugenio, 2022. "Does health information affect lifestyle behaviours? The impact of a diabetes diagnosis," Social Science & Medicine, Elsevier, vol. 314(C).
    5. Rhys Llewellyn Thomas & Emmanouil Mentzakis, 2024. "The direct and spillover effects of diabetes diagnosis on lifestyle behaviours," Health Economics, John Wiley & Sons, Ltd., vol. 33(5), pages 952-970, May.
    6. Lusher, Lester & Ruberg, Tim, 2023. "Killer Alerts? Public Health Warnings and Heat Stroke in Japan," IZA Discussion Papers 16562, Institute of Labor Economics (IZA).
    7. Lester Lusher & Tim Ruberg, 2024. "Unveiling the Unseen Illness: Public Health Warnings and Heat Stroke," Keio-IES Discussion Paper Series 2024-020, Institute for Economics Studies, Keio University.
    8. Karen Eggleston & Brian K. Chen & Chih-Hung Chen & Ying Isabel Chen & Talitha Feenstra & Toshiaki Iizuka & Janet Tin Kei Lam & Gabriel M. Leung & Jui-fen Rachel Lu & Beatriz Rodriguez-Sanchez & Jeroen, 2020. "Are quality-adjusted medical prices declining for chronic disease? Evidence from diabetes care in four health systems," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(5), pages 689-702, July.
    9. Heather Kolakowski & Mardelle McCuskey Shepley & Ellie Valenzuela-Mendoza & Nicolas R. Ziebarth, 2021. "How the COVID-19 Pandemic Will Change Workplaces, Healthcare Markets and Healthy Living: An Overview and Assessment," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    10. Lei, Xiaoyan & Song, Guangxiang & Su, Xuejuan, 2021. "Information, Belief, and Health Behavior: Evidence from China," Working Papers 2021-9, University of Alberta, Department of Economics.
    11. Oikawa, M., 2020. "The effect of education on health policy reform: Evidence from Japan," Health, Econometrics and Data Group (HEDG) Working Papers 20/08, HEDG, c/o Department of Economics, University of York.
    12. Masato Oikawa & Takamasa Yamaguchi & Toshihide Awatani & Haruko Noguchi & Akira Kawamura, 2024. "Impacts of health checkup programs standardization on working-age self-employed and unemployed: Insights from Japan’s local government response to national policy," Working Papers 2406, Waseda University, Faculty of Political Science and Economics.
    13. Guo, Audrey & Zhang, Jonathan, 2019. "What to expect when you are expecting: Are health care consumers forward-looking?," Journal of Health Economics, Elsevier, vol. 67(C).
    14. Masato Oikawa, 2024. "The role of education in health policy reform outcomes: evidence from Japan," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(1), pages 49-76, February.
    15. David, Guy & Smith-McLallen, Aaron & Ukert, Benjamin, 2019. "The effect of predictive analytics-driven interventions on healthcare utilization," Journal of Health Economics, Elsevier, vol. 64(C), pages 68-79.

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    More about this item

    Keywords

    Health; Signals; Information; Value; Prevention; Diabetes;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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