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Private versus social opportunity cost of time: Valuing time in the demand for health care

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  • D. J. Torgerson
  • C. Donaldson
  • D. M. Reid

Abstract

In this paper we examine whether the current method of valuing time within economic appraisals is appropriate. The cost to society of time taken to use health care may differ from the private opportunity cost of such time. However, demand for health care may be affected by the private opportunity time cost and not by the value of time to society. In this paper we show that the private opportunity cost of time is a better predictor of demand for a screening service than the societal approach. It is important, therefore, to use the private opportunity cost of time when assessing the demand for, and impact of, a health care intervention.

Suggested Citation

  • D. J. Torgerson & C. Donaldson & D. M. Reid, 1994. "Private versus social opportunity cost of time: Valuing time in the demand for health care," Health Economics, John Wiley & Sons, Ltd., vol. 3(3), pages 149-155, May.
    • Handle: RePEc:wly:hlthec:v:3:y:1994:i:3:p:149-155
    DOI: 10.1002/hec.4730030304
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    1. Wagner, Todd H. & Hu, Teh-wei & Duenas, Grace V. & Pasick, Rena J., 2000. "Willingness to pay for mammography: item development and testing among five ethnic groups," Health Policy, Elsevier, vol. 53(2), pages 105-121, September.
    2. Dickey, H. & Ikenwilo, D. & Norwood, P. & Watson, V. & Zangelidis, A., 2016. "“Doctor my eyes”: A natural experiment on the demand for eye care services," Social Science & Medicine, Elsevier, vol. 150(C), pages 117-127.
    3. Andronis, Lazaros & Morgan, Cameron & Donaldson, Cam & Lancsar, Emily & Petrou, Stavros, 2023. "Views, obstacles, and uncertainties around the inclusion of children and young people's time in economic evaluations: Findings from an international survey of health economists," Social Science & Medicine, Elsevier, vol. 333(C).
    4. Carla Canelas & François Gardes & Philip Merrigan & Silvia Salazar, 2019. "Are time and money equally substitutable for all commodity groups in the household’s domestic production?," Review of Economics of the Household, Springer, vol. 17(1), pages 267-285, March.
    5. Anezaki, Hisataka & Hashimoto, Hideki, 2018. "Time cost of child rearing and its effect on women's uptake of free health checkups in Japan," Social Science & Medicine, Elsevier, vol. 205(C), pages 1-7.
    6. Hongyu Guan & Huan Wang & Juerong Huang & Kang Du & Jin Zhao & Matthew Boswell & Yaojiang Shi & Mony Iyer & Scott Rozelle, 2018. "Health Seeking Behavior among Rural Left-Behind Children: Evidence from Shaanxi and Gansu Provinces in China," IJERPH, MDPI, vol. 15(5), pages 1-19, April.
    7. Mark Sculpher & Michael Palmer & Anne Heyes, 2000. "Costs Incurred by Patients Undergoing Advanced Colorectal Cancer Therapy," PharmacoEconomics, Springer, vol. 17(4), pages 361-370, April.

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