Related Experiment Video
Updated: Jul 12, 2026
07:05
Operant Protocols for Assessing the Cost-benefit Analysis During Reinforced Decision Making by Rodents
Published on: September 10, 2018
On the estimation of cost-effectiveness ratios
1Centre for Health Economics, Stockholm School of Economics, Sweden.
Health Policy (Amsterdam, Netherlands)
|February 7, 1995
Summary
Birch and Gafni
Area of Science:
- Health Economics
- Resource Allocation
- Decision Analysis
Background:
- Critique of cost-effectiveness ratios (CERs) in healthcare resource allocation by Birch and Gafni.
- Concerns raised regarding CERs' ability to maximize health outcomes within budget constraints.
Discussion:
- The paper identifies two fundamental errors in Birch and Gafni's example.
- Error 1: Failure to exclude dominated programs when calculating incremental cost-effectiveness ratios (ICERs).
- Error 2: Neglecting the distinction between independent and mutually exclusive programs.
Key Insights:
- Correctly excluding dominated programs is crucial for accurate ICER estimation.
- Differentiating between independent and mutually exclusive programs is essential for valid cost-effectiveness analysis.
- The critique highlights the importance of methodological rigor in applying cost-effectiveness analysis.
Outlook:
- Accurate application of cost-effectiveness analysis is vital for informed healthcare resource allocation.
- A more objective discussion on cost-effectiveness analysis requires correct methodological implementation.
- Ensuring proper use of cost-effectiveness techniques will lead to better healthcare decision-making.
Related Concept Videos
00:54Ratio Level of Measurement
The way a set of data is measured is called its level of measurement. Correct statistical procedures depend on a researcher being familiar with levels of measurement. For analysis, data are classified into four levels of measurement—nominal, ordinal, interval, and ratio.
A set of data measured using the ratio scale takes care of the ratio problem and provides complete information. Ratio scale data are like interval scale data, except they have a zero point and ratios can be calculated. For...
A set of data measured using the ratio scale takes care of the ratio problem and provides complete information. Ratio scale data are like interval scale data, except they have a zero point and ratios can be calculated. For...
01:23Types of Biopharmaceutical Studies: Controlled and Non-Controlled Approaches
Biopharmaceutical studies constitute a vital field aiming to enhance drug delivery methods and refine therapeutic approaches, drawing upon diverse interdisciplinary knowledge. In research methodologies, the choice between controlled and non-controlled studies significantly influences the study's reliability and accuracy.
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast, controlled...
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast, controlled...
01:26Pharmacokinetic Models: Comparison and Selection Criterion
Physiological and compartmental models are valuable tools used in studying biological systems. These models rely on differential equations to maintain mass balance within the system, ensuring an accurate representation of the dynamic processes at play.
Physiological models take a detailed approach by considering specific molecular processes. They can predict drug distribution, metabolism, and elimination changes, providing a comprehensive understanding of how drugs interact with the body.
Physiological models take a detailed approach by considering specific molecular processes. They can predict drug distribution, metabolism, and elimination changes, providing a comprehensive understanding of how drugs interact with the body.
01:12Relative Risk
Relative risk (RR) is a statistical measure commonly used in epidemiology to compare the likelihood of a particular event occurring between two groups. This metric is important for evaluating the relationship between exposure to a specific risk factor and the probability of a particular outcome. It plays a crucial role in medical research, public health studies, and risk assessment. Relative risk quantifies how much more (or less) likely an event is to occur in an exposed group compared to an...
01:09Odds Ratio
The odds ratio (OR) is a statistical measure used extensively in epidemiology and research to quantify the strength of association between exposure and outcome across different groups. Unlike relative risk, which compares the probabilities of an event occurring, the odds ratio compares the odds of an event occurring in the exposed group to the odds of it occurring in the unexposed group. The odds, in this context, are calculated as the probability of the event happening divided by the...
01:12Hazard Ratio
The hazard ratio (HR) is a widely used measure in clinical trials to compare the risk of events, such as death or disease recurrence, between two groups over time. It reflects the ratio of hazard rates—the instantaneous risk of the event occurring—between a treatment group and a control group. This measure provides valuable insights into the relative effectiveness of a treatment by assessing how the risk of an event differs between the two groups.
For example, in a clinical trial evaluating a...
For example, in a clinical trial evaluating a...