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Partially wrong? Partial equilibrium and the economic analysis of public health emergencies of international concern

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  • P. Beutels
  • W. J. Edmunds
  • R. D. Smith

Abstract

We argue that traditional health economic analysis is ill‐equipped to estimate the cost effectiveness and cost benefit of interventions that aim at controlling and/or preventing public health emergencies of international concern (such as pandemic influenza or severe acute respiratory syndrome). The implicit assumption of partial equilibrium within both the health sector itself and – if a wider perspective is adopted – the economy as a whole would be violated by such emergencies. We propose an alternative, with the specific aim of accounting for the behavioural changes and capacity problems that are expected to occur when such an outbreak strikes. Copyright © 2008 John Wiley & Sons, Ltd.

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  • P. Beutels & W. J. Edmunds & R. D. Smith, 2008. "Partially wrong? Partial equilibrium and the economic analysis of public health emergencies of international concern," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1317-1322, November.
    • Handle: RePEc:wly:hlthec:v:17:y:2008:i:11:p:1317-1322
    DOI: 10.1002/hec.1339
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    References listed on IDEAS

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    1. Jong-Wha Lee & Warwick J. McKibbin, 2004. "Globalization and Disease: The Case of SARS," Asian Economic Papers, MIT Press, vol. 3(1), pages 113-131.
    2. Smith, Richard D., 2006. "Responding to global infectious disease outbreaks: Lessons from SARS on the role of risk perception, communication and management," Social Science & Medicine, Elsevier, vol. 63(12), pages 3113-3123, December.
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    4. Smith, Richard D. & Yago, Milton & Millar, Michael & Coast, Jo, 2005. "Assessing the macroeconomic impact of a healthcare problem: The application of computable general equilibrium analysis to antimicrobial resistance," Journal of Health Economics, Elsevier, vol. 24(6), pages 1055-1075, November.
    5. Nancy Devlin & David Parkin, 2004. "Does NICE have a cost‐effectiveness threshold and what other factors influence its decisions? A binary choice analysis," Health Economics, John Wiley & Sons, Ltd., vol. 13(5), pages 437-452, May.
    6. 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.
    7. Jan Abel Olsen & Richard D. Smith, 2001. "Theory versus practice: a review of ‘willingness‐to‐pay’ in health and health care," Health Economics, John Wiley & Sons, Ltd., vol. 10(1), pages 39-52, January.
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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Policy responses

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    Cited by:

    1. George Verikios & Maura Sullivan & Pane Stojanovski & James Giesecke & Gordon Woo, 2016. "Assessing Regional Risks From Pandemic Influenza: A Scenario Analysis," The World Economy, Wiley Blackwell, vol. 39(8), pages 1225-1255, August.
    2. Marco Hafner & Erez Yerushalmi & Fredrik L. Andersson & Teodor Burtea, 2023. "Partially different? The importance of general equilibrium in health economic evaluations: An application to nocturia," Health Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 654-674, March.
    3. Klas Kellerborg & Werner Brouwer & Pieter Baal, 2020. "Costs and benefits of interventions aimed at major infectious disease threats: lessons from the literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(9), pages 1329-1350, December.
    4. Deliana Kostova & Cynthia H. Cassell & John T. Redd & Desmond E. Williams & Tushar Singh & Lise D. Martel & Rebecca E. Bunnell, 2019. "Long‐distance effects of epidemics: Assessing the link between the 2014 West Africa Ebola outbreak and U.S. exports and employment," Health Economics, John Wiley & Sons, Ltd., vol. 28(11), pages 1248-1261, November.
    5. Dunia Rassy & Richard D. Smith, 2013. "The economic impact of H1N1 on Mexico's tourist and pork sectors," Health Economics, John Wiley & Sons, Ltd., vol. 22(7), pages 824-834, July.
    6. Richard Smith, 2012. "Trade in Health Services: Current Challenges and Future Prospects of Globalization," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 16, Edward Elgar Publishing.
    7. Liverani, Marco & Waage, Jeff & Barnett, Tony & Pfeiffer, Dirk U. & Rushton, Jonathan & Rudge, James W. & Loevinsohn, Michael E. & Scoones, Ian & Smith, Richard D. & Cooper, Ben S. & White, Lisa J. & , 2013. "Understanding and managing zoonotic risk in the new livestock industries," LSE Research Online Documents on Economics 50665, London School of Economics and Political Science, LSE Library.
    8. George Verikios, 2017. "The importance of periodicity in modelling infectious disease outbreaks," Discussion Papers in Economics economics:201711, Griffith University, Department of Accounting, Finance and Economics.
    9. Kabajulizi, Judith & Boysen, Ole, 2021. "The macroeconomic implications of COVID-19 pandemic and associated policies: An economy-wide analysis of Uganda," Conference papers 333310, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Cozzi, Guido & Galli, Silvia, 2022. "Covid-19 Vaccines, Innovation, and Intellectual Property Rights," GLO Discussion Paper Series 1095, Global Labor Organization (GLO).
    11. Joseph H. Cook, 2013. "Principles and standards for benefit–cost analysis of public health preparedness and pandemic mitigation programs," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 3, pages 110-152, Edward Elgar Publishing.
    12. Arthur E. Attema & Anna K. Lugnér & Talitha L. Feenstra, 2010. "Investment in antiviral drugs: a real options approach," Health Economics, John Wiley & Sons, Ltd., vol. 19(10), pages 1240-1254, October.
    13. Carlo Drago & Matteo Ruggeri, 2019. "Setting research priorities in the field of emergency management: which piece of information are you willing to pay more?," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 2103-2115, July.
    14. Judith Kabajulizi, 2013. "Macroeconomic Implications Of Health Sector Reforms In Uganda: A Computable General Equilibrium Analysis," EcoMod2013 5158, EcoMod.
    15. Deliana Kostova & Walter Ochieng & Rajeev Cherukupalli & John T Redd, 2020. "U.S. trade indicators and epidemics: Lessons from the 2003 SARS outbreak," Economics Bulletin, AccessEcon, vol. 40(4), pages 2610-2618.
    16. Yuhan Cheng & Dongqi Cui & Zixuan Li, 2020. "COVID-19 Virus Pneumonia’s Economic Effect in Different Industries: A Case Study in China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(5), pages 1-7.

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