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Testing the convergent validity of the contingent valuation and travel cost methods in valuing the benefits of health care

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  • Philip M. Clarke

Abstract

In this study, the convergent validity of the contingent valuation method (CVM) and travel cost method (TCM) is tested by comparing estimates of the willingness to pay (WTP) for improving access to mammographic screening in rural areas of Australia. It is based on a telephone survey of 458 women in 19 towns, in which they were asked about their recent screening behaviour and their WTP to have a mobile screening unit visit their nearest town. After eliminating missing data and other non‐usable responses the contingent valuation experiment and travel cost model were based on information from 372 and 319 women, respectively. Estimates of the maximum WTP for the use of mobile screening units were derived using both methods and compared. The highest mean WTP estimated using the TCM was $83.10 (95% C.I. $99.06–$68.53), which is significantly less than the estimate of $148.09 ($131.13–$166.60) using the CVM. This could be due to the CVM estimates also reflecting non‐use values such as altruism, or a range of potential biases that are known to affect both methods. Further tests of validity are required in order to gain a greater understanding of the relationship between these two methods of estimating WTP. Copyright © 2001 John Wiley & Sons, Ltd.

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  • Philip M. Clarke, 2002. "Testing the convergent validity of the contingent valuation and travel cost methods in valuing the benefits of health care," Health Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 117-127, March.
    • Handle: RePEc:wly:hlthec:v:11:y:2002:i:2:p:117-127
    DOI: 10.1002/hec.651
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    2. Longo, Alberto & Hutchinson, W. George & Hunter, Ruth F. & Tully, Mark A. & Kee, Frank, 2015. "Demand response to improved walking infrastructure: A study into the economics of walking and health behaviour change," Social Science & Medicine, Elsevier, vol. 143(C), pages 107-116.
    3. Borghi, Josephine & Shrestha, Daya L. & Shrestha, Deepa & Jan, Stephen, 2007. "Using focus groups to develop contingent valuation scenarios--A case study of women's groups in rural Nepal," Social Science & Medicine, Elsevier, vol. 64(3), pages 531-542, February.
    4. Moger, Tron Anders & Kristiansen, Ivar Sønbø, 2012. "Direct and indirect costs of the Norwegian Breast Cancer Screening Program," HERO Online Working Paper Series 2012:3, University of Oslo, Health Economics Research Programme.
    5. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    6. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401, April.
    7. Akbar Marvasti, 2006. "A Contingent Valuation of Customer Delay in Medical Services," Eastern Economic Journal, Eastern Economic Association, vol. 32(1), pages 31-45, Winter.
    8. John C. Whitehead & Bruce K. Johnson & Daniel S. Mason & Gordon J. Walker, 2009. "Using Revealed and Stated Preference Data to Estimate the Demand and Consumption Benefits of Sporting Events: An Application to National Hockey League Game Trips," Working Papers 09-13, Department of Economics, Appalachian State University.
    9. Shou-Lin Yang & Chiung-Ying Lee, 2015. "Analysis of the medical demands of elderly dementia patients considering the caregiver cost of medical accompaniment: an application of the travel cost method and altruistic utility function," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 423-439, January.
    10. Urama, Kevin C. & Hodge, Ian D., 2006. "Are stated preferences convergent with revealed preferences? Empirical evidence from Nigeria," Ecological Economics, Elsevier, vol. 59(1), pages 24-37, August.
    11. Armbrecht, John, 2014. "Use value of cultural experiences: A comparison of contingent valuation and travel cost," Tourism Management, Elsevier, vol. 42(C), pages 141-148.
    12. Borghi, Josephine & Jan, Stephen, 2008. "Measuring the benefits of health promotion programmes: Application of the contingent valuation method," Health Policy, Elsevier, vol. 87(2), pages 235-248, August.
    13. Bernard van den Berg & Ada Ferrer‐i‐Carbonell, 2007. "Monetary valuation of informal care: the well‐being valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 16(11), pages 1227-1244, November.
    14. Jeuland, Marc & Lucas, Marcelino & Clemens, John & Whittington, Dale, 2010. "Estimating the private benefits of vaccination against cholera in Beira, Mozambique: A travel cost approach," Journal of Development Economics, Elsevier, vol. 91(2), pages 310-322, March.
    15. Munro, Alistair, 2007. "When is some number really better than no number? On the optimal choice between non-market valuation methods," MPRA Paper 8978, University Library of Munich, Germany.

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