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Determining the parameters in a social welfare function using stated preference data: an application to health

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  • Paul Dolan
  • Aki Tsuchiya

Abstract

One way in which economists might determine how best to balance the competing objectives of efficiency and equality is to specify a Social Welfare Function (SWF). This article looks at how the stated preferences of a sample of the general public can be used to estimate the shape of the SWF in the domain of health benefits. The results suggest that people are willing to make trade-offs between efficiency and equality and that these trade-offs are sensitive to what kind of inequalities exist and to the groups across which those inequalities exist.

Suggested Citation

  • Paul Dolan & Aki Tsuchiya, 2011. "Determining the parameters in a social welfare function using stated preference data: an application to health," Applied Economics, Taylor & Francis Journals, vol. 43(18), pages 2241-2250.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2241-2250
    DOI: 10.1080/00036840903166244
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    References listed on IDEAS

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    1. Drummond, Michael F. & Sculpher, Mark J. & Torrance, George W. & O'Brien, Bernie J. & Stoddart, Greg L., 2005. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 3, number 9780198529453.
    2. Dolan, Paul & Olsen, Jan Abel, 2002. "Distributing Health Care: Economic and ethical issues," OUP Catalogue, Oxford University Press, number 9780192632531.
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