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Meta-Analysis, Decision Analysis, and Cost-Effectiveness Analysis$
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Diana B. Petitti

Print publication date: 1999

Print ISBN-13: 9780195133646

Published to Oxford Scholarship Online: September 2009

DOI: 10.1093/acprof:oso/9780195133646.001.0001

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Advanced Cost-Effectiveness Analysis

Advanced Cost-Effectiveness Analysis

(p.182) 12 Advanced Cost-Effectiveness Analysis
Meta-Analysis, Decision Analysis, and Cost-Effectiveness Analysis

Diana B. Petitti

Oxford University Press

This chapter introduces more advanced methods used in conduct of cost-effectiveness analyses that are built on the results of decision analysis. It describes the main types of cost analysis used to evaluate health programs, discusses the reasons why cost-benefit analysis is rarely done in health care, and gives the rationale for the focus in medicine and health on cost-effectiveness and cost-utility analysis. The distinction between the average and marginal cost-effectiveness ratio is given. The chapter delineates the importance of perspective in cost-effectiveness analysis. It discusses the choice of time horizon and discount rate as key factors that affect cost-effectiveness analysis. It describes how cost should be measured ideally and how cost is most often measured in practice.

Keywords:   cost-benefit analysis, marginal cost-effectiveness ratio, discount rate, perspective, time horizon

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