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A theoretical framework for TTO valuations of health

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  • Ken Buckingham
  • Nancy Devlin

Abstract

This paper proposes a theoretical framework, drawing on Hicks utility theory, for the Time Trade‐off (TTO) method conventionally used to value health states. We briefly describe that theory and posit four distinctive TTO valuation approaches suggested by it: each of compensating variation and equivalent variation for both gains and losses in health, with valuation of health states in each case derived from trade‐offs between health and length of life. Recent developments and research on TTO valuation are placed in the context of this framework. Copyright © 2006 John Wiley & Sons, Ltd.

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  • Ken Buckingham & Nancy Devlin, 2006. "A theoretical framework for TTO valuations of health," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1149-1154, October.
    • Handle: RePEc:wly:hlthec:v:15:y:2006:i:10:p:1149-1154
    DOI: 10.1002/hec.1122
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    References listed on IDEAS

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    1. J. R. Hicks, 1943. "The Four Consumer's Surpluses," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 11(1), pages 31-41.
    2. Bleichrodt, Han & Pinto, Jose Luis & Maria Abellan-Perpinan, Jose, 2003. "A consistency test of the time trade-off," Journal of Health Economics, Elsevier, vol. 22(6), pages 1037-1052, November.
    3. 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.
    4. Johansson,Per-Olov, 1991. "An Introduction to Modern Welfare Economics," Cambridge Books, Cambridge University Press, number 9780521356954, September.
    5. Anne Spencer, 2003. "The TTO method and procedural invariance," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 655-668, August.
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    Citations

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    Cited by:

    1. David Parkin & Nancy Devlin, 2006. "Is there a case for using visual analogue scale valuations in cost‐utility analysis?," Health Economics, John Wiley & Sons, Ltd., vol. 15(7), pages 653-664, July.
    2. Bansback, Nick & Brazier, John & Tsuchiya, Aki & Anis, Aslam, 2010. "Using a discrete choice experiment to estimate societal health state utility values," MPRA Paper 29933, University Library of Munich, Germany.
    3. Jing Guo & R. Tamara Konetzka & Elizabeth Magett & William Dale, 2015. "Quantifying Long-Term Care Preferences," Medical Decision Making, , vol. 35(1), pages 106-113, January.
    4. Buckingham, Ken J. & Devlin, Nancy Joy, 2009. "A note on the nature of utility in time and health and implications for cost utility analysis," Social Science & Medicine, Elsevier, vol. 68(2), pages 362-367, January.
    5. Nicolas A. Menzies & Joshua A. Salomon, 2011. "Non‐monotonicity in the episodic random utility model," Health Economics, John Wiley & Sons, Ltd., vol. 20(12), pages 1523-1531, December.
    6. Daniel M. Hausman, 2010. "Valuing health: a new proposal," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 280-296, March.
    7. Cathrine Elgaard Jensen & Sabrina Storgaard Sørensen & Claire Gudex & Morten Berg Jensen & Kjeld Møller Pedersen & Lars Holger Ehlers, 2021. "The Danish EQ-5D-5L Value Set: A Hybrid Model Using cTTO and DCE Data," Applied Health Economics and Health Policy, Springer, vol. 19(4), pages 579-591, July.
    8. Buckingham, K. & Devlin, N., 2008. "A note on the nature of utility in time and health and implications for cost utility analysis," Working Papers 08/02, Department of Economics, City University London.
    9. Nancy J. Devlin & Koonal K. Shah & Brendan J. Mulhern & Krystallia Pantiri & Ben van Hout, 2019. "A new method for valuing health: directly eliciting personal utility functions," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(2), pages 257-270, March.

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