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The relative sensitivity of willingness‐to‐pay and time‐trade‐off to changes in health status: an empirical investigation

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  • Richard D. Smith

Abstract

This paper directly compares the relative sensitivity of time‐trade‐off (TTO) and willingness‐to‐pay (WTP) values obtained for various levels of change in health status. This was achieved by administering a TTO and WTP survey to a population of 50 subjects, assessing their valuation of various degrees of change in health status. It was found that, overall, WTP is more sensitive than TTO in distinguishing between different dimensions of health at the same nominal level of health status (only four WTP values not significantly different, compared with eight TTO values). In addition, WTP was also more sensitive to differences in quality of life between different levels of health within each dimension (all values significantly different from each other, with TTO yielding three insignificant relationships). These results tentatively suggest, therefore, that WTP seems to be a more sensitive measure of change in health status than TTO. Copyright © 2001 John Wiley & Sons, Ltd.

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  • Richard D. Smith, 2001. "The relative sensitivity of willingness‐to‐pay and time‐trade‐off to changes in health status: an empirical investigation," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 487-497, September.
    • Handle: RePEc:wly:hlthec:v:10:y:2001:i:6:p:487-497
    DOI: 10.1002/hec.604
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    Cited by:

    1. Cam Donaldson & Helen Mason & Phil Shackley, 2012. "Contingent Valuation in Health Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 40, Edward Elgar Publishing.
    2. Dorte Gyrd‐Hansen & Trine Kjær, 2012. "Disentangling WTP per QALY data: different analytical approaches, different answers," Health Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 222-237, March.
    3. Richard D. Smith, 2007. "Use, option and externality values: are contingent valuation studies in health care mis‐specified?," Health Economics, John Wiley & Sons, Ltd., vol. 16(8), pages 861-869, August.
    4. Richard D. Smith, 2008. "Contingent valuation in health care: does it matter how the ‘good’ is described?," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 607-617, May.
    5. Richard D. Smith, 2007. "The role of 'reference goods' in contingent valuation: should we help respondents to 'construct' their willingness to pay?," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1319-1332.
    6. Najme Moradi & Arash Rashidian & Shirin Nosratnejad & Alireza Olyaeemanesh & Marzieh Zanganeh & Leila Zarei, 2019. "The Worth of a Quality-Adjusted Life-Year in Patients with Diabetes: An Investigation Study using a Willingness-to-Pay Method," PharmacoEconomics - Open, Springer, vol. 3(3), pages 311-319, September.
    7. Bente Halvorsen & Tiril Willumsen, 2004. "Willingness to pay for dental fear treatment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 5(4), pages 299-308, November.
    8. Smith, Richard D. & Richardson, Jeff, 2005. "Can we estimate the `social' value of a QALY?: Four core issues to resolve," Health Policy, Elsevier, vol. 74(1), pages 77-84, September.
    9. Richard D. Smith, 2007. "The role of ‘reference goods’ in contingent valuation: should we help respondents to ‘construct’ their willingness to pay?," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1319-1332, December.
    10. Bobinac, Ana & van Exel, N. Job A. & Rutten, Frans F.H. & Brouwer, Werner B.F., 2012. "GET MORE, PAY MORE? An elaborate test of construct validity of willingness to pay per QALY estimates obtained through contingent valuation," Journal of Health Economics, Elsevier, vol. 31(1), pages 158-168.
    11. Smith, Richard D., 2005. "Sensitivity to scale in contingent valuation: the importance of the budget constraint," Journal of Health Economics, Elsevier, vol. 24(3), pages 515-529, May.

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