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Existence and Magnitude of Health-related Externalities: Evidence from a Choice Experiment

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  • Jeremiah Hurley
  • Emmanouil Mentzakis

Abstract

Health-related external benefits are of potentially large importance for public policy. This paper investigates health-related external benefits using a stated-preference discrete-choice experiment framed in a health care context and including choice scenarios de ned by six attributes related to the a recipient and the recipient's condition: communicability, severity, medical necessity, relationship to respondent, location, and amount of contribution requested. Subjects also completed a set of own-treatment scenarios and a values-orientation instrument. We find evidence of substantial health-related external benefits that vary as expected with the scenario attributes and subjects' value orientations. The results are consistent with a number of hypotheses offered by the general theoretical analysis of health-related externalities and the analysis of externalities specific to health care.

Suggested Citation

  • Jeremiah Hurley & Emmanouil Mentzakis, 2011. "Existence and Magnitude of Health-related Externalities: Evidence from a Choice Experiment," Department of Economics Working Papers 2011-01, McMaster University.
    • Handle: RePEc:mcm:deptwp:2011-01
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    2. Aleksandra Gajic & David Cameron & Jeremiah Hurley, 2012. "The cost-effectiveness of cash versus lottery incentives for a web-based, stated-preference community survey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(6), pages 789-799, December.

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    More about this item

    Keywords

    externalities; altruism; health care financing; program evaluation;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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