Multivariate risk preferences in the quality-adjusted life year model
Standard
Multivariate risk preferences in the quality-adjusted life year model. / Attema, Arthur E.; Frasch, Jona J.; L’Haridon, Olivier.
in: HEALTH ECON, Jahrgang 31, Nr. 2, 02.2022, S. 382-398.Publikationen: SCORING: Beitrag in Fachzeitschrift/Zeitung › SCORING: Zeitschriftenaufsatz › Forschung › Begutachtung
Harvard
APA
Vancouver
Bibtex
}
RIS
TY - JOUR
T1 - Multivariate risk preferences in the quality-adjusted life year model
AU - Attema, Arthur E.
AU - Frasch, Jona J.
AU - L’Haridon, Olivier
N1 - https://doi.org/10.1002/hec.4456
PY - 2022/2
Y1 - 2022/2
N2 - The interest in multivariate and higher-order risk preferences has increased. A growing body of literature has demonstrated the relevance and impact of these preferences, but for health the evidence is lacking. We measure multivariate and higher-order risk preferences for quality of life (QoL) and longevity, the two attributes of the Quality-Adjusted Life Year (QALY) model. We observe preferences for a positive correlation between these attributes and for pooling together a fixed loss in one of the attributes and a mean-zero risk in the other, and for pooling together mean-zero risks in QoL and longevity. The findings indicate that higher-order risk preferences are stronger for health than for money. Furthermore, we test if preferences for a risky treatment for a disease affecting only QoL, depend on life expectancy. We find no such a relation, but there is a positive relation between riskiness of a comorbidity affecting life expectancy and risk aversion for a QoL treatment. We therefore observe no definitive deviation from the QALY model, although the model is more robust when expected longevity is high. Our findings suggest that the current practice of cost-effectiveness analysis should be generalized to account for risk aversion in QoL and longevity, and higher-order preferences.
AB - The interest in multivariate and higher-order risk preferences has increased. A growing body of literature has demonstrated the relevance and impact of these preferences, but for health the evidence is lacking. We measure multivariate and higher-order risk preferences for quality of life (QoL) and longevity, the two attributes of the Quality-Adjusted Life Year (QALY) model. We observe preferences for a positive correlation between these attributes and for pooling together a fixed loss in one of the attributes and a mean-zero risk in the other, and for pooling together mean-zero risks in QoL and longevity. The findings indicate that higher-order risk preferences are stronger for health than for money. Furthermore, we test if preferences for a risky treatment for a disease affecting only QoL, depend on life expectancy. We find no such a relation, but there is a positive relation between riskiness of a comorbidity affecting life expectancy and risk aversion for a QoL treatment. We therefore observe no definitive deviation from the QALY model, although the model is more robust when expected longevity is high. Our findings suggest that the current practice of cost-effectiveness analysis should be generalized to account for risk aversion in QoL and longevity, and higher-order preferences.
KW - comorbidities
KW - correlation attitude
KW - prudence
KW - QALYs
KW - risk apportionment
KW - risk aversion
KW - temperance
KW - treatment intensity
U2 - 10.1002/hec.4456
DO - 10.1002/hec.4456
M3 - SCORING: Journal article
VL - 31
SP - 382
EP - 398
JO - HEALTH ECON
JF - HEALTH ECON
SN - 1057-9230
IS - 2
ER -