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Global Health Priority-SettingBeyond Cost-Effectiveness$
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Ole F. Norheim, Ezekiel J. Emanuel, and Joseph Millum

Print publication date: 2019

Print ISBN-13: 9780190912765

Published to Oxford Scholarship Online: December 2019

DOI: 10.1093/oso/9780190912765.001.0001

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Cost-Effectiveness Analysis

Cost-Effectiveness Analysis

Chapter:
(p.69) 5 Cost-Effectiveness Analysis
Source:
Global Health Priority-Setting
Author(s):

Jeremy A. Lauer

Alec Morton

Melanie Bertram

Publisher:
Oxford University Press
DOI:10.1093/oso/9780190912765.003.0005

Cost-effectiveness analysis (CEA) is a form of economic evaluation concerned with efficiency: that is, with achieving the most for the resources (“value for money”). This chapter explains the appeal and relevance of CEA and describes its use in localized and strategic decision-making. Localized decision-making (marginal CEA using thresholds) poses the risk of “baking in” past allocation errors, while strategic decision-making (generalized CEA) can be impractical due to the large amount of information required, among other considerations. The authors provide an example of using CEA to evaluate a program for tuberculosis treatment and close with some recommendations for using CEA in strategic planning, which is a hybrid approach linking the localized and strategic approaches to CEA and remedying thereby some of the defects of each.

Keywords:   cost-effectiveness analysis, CEA, generalized CEA, marginal CEA, constrained optimization, cost-effectiveness threshold, strategic planning

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