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The true significance of ‘high’ correlations between EQ-5D value sets

Author

Listed:
  • Franz Ombler

    (Department of Computer Science, University of Otago, New Zealand)

  • Michael Albert

    (Department of Computer Science, University of Otago, New Zealand)

  • Paul Hansen

    (Department of Economics, University of Otago, New Zealand)

Abstract

High correlation coefficients for EQ-5D value sets derived from different samples, e.g. across countries, are conventionally interpreted as evidence that the people in the respective samples have similar health-related quality of life preferences. However, EQ-5D value sets contain many inherent rankings of health state values by design. By calculating coefficients for value sets created from random data, we demonstrate that ‘high’ correlation coefficients are an artefact of these inherent rankings; e.g. median Pearson’s r = 0.783 for the EQ-5D-3L and 0.850 for the EQ-5D-5L instead of zero. Therefore, high correlation coefficients do not necessarily constitute evidence of ‘true’ associations. After calculating significance levels based on our simulations – available as a resource for other researchers – we find that many high coefficients are not as significant as conventionally interpreted, whereas other coefficients are not significant. These ‘high’ but insignificant correlations are in fact spurious.

Suggested Citation

  • Franz Ombler & Michael Albert & Paul Hansen, 2017. "The true significance of ‘high’ correlations between EQ-5D value sets," Working Papers 1704, University of Otago, Department of Economics, revised Mar 2017.
    • Handle: RePEc:otg:wpaper:1704
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    File URL: http://www.otago.ac.nz/economics/otago640091.pdf
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    References listed on IDEAS

    as
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    4. Nancy J. Devlin & Paul Hansen & Paul Kind & Alan Williams, 2003. "Logical inconsistencies in survey respondents' health state valuations ‐ a methodological challenge for estimating social tariffs," Health Economics, John Wiley & Sons, Ltd., vol. 12(7), pages 529-544, July.
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    More about this item

    Keywords

    Correlation; statistical significance; EQ-5D; health-related quality of life;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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