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Willingness to Pay for Hormone Replacement Therapy

Author

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  • Zethraeus, Niklas

    (Dept. of Economics, Stockholm School of Economics)

  • Johansson, Per-Olov

    (Dept. of Economics, Stockholm School of Economics)

Abstract

This study addresses the question of willingness to pay (WTP) for hormone replacement therapy (HRT) in order to alleviate menopayusal symptoms. A utility model is specified where the individual obtains utility from consumption of goods and health. The purchase of a treatment is represented as a shift in the health production function during the treatment period. The mean WTP for the HRT is estimated using a parametric and a non-parametric method. The mean WTP based on these two methods is similar in both cases and amounts to about SEK 40,000 per year. Further, it is shown that the mean WTP is above the mean treatment costs of HRT. Finally, the implied WTP per gained quality adjusted life year is estimated at about SEK 120,000 and SEK 160,000 based on the rating scale (RS) and time trade-off (TTO) methods, respectively.

Suggested Citation

  • Zethraeus, Niklas & Johansson, Per-Olov, 1997. "Willingness to Pay for Hormone Replacement Therapy," SSE/EFI Working Paper Series in Economics and Finance 214, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0214
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    References listed on IDEAS

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    More about this item

    Keywords

    Hormone replacement therapy; menopausal symptoms; willingness to pay.;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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