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Estimating time preferences for health using discrete choice experiments.

M van der Pol1, J Cairns

  • 1Health Economics Research Unit, University of Aberdeen, Foresterhill, UK. m.m.vanderpol@abdn.ac.uk

Social Science & Medicine (1982)
|April 5, 2001
PubMed
Summary

This study explores how people value future health, finding higher discount rates for others' health than one's own. Discrete choice experiments reveal preferences for health duration and timing.

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Area of Science:

  • Health Economics
  • Behavioral Economics
  • Decision Science

Background:

  • Understanding inter-temporal preferences for health is crucial for healthcare policy and resource allocation.
  • Previous research has primarily used closed-ended methods to assess health-related time preferences.
  • A gap exists in understanding how individuals value their own future health versus the future health of others.

Purpose of the Study:

  • To be the first study to employ discrete choice experiments (DCEs) for eliciting inter-temporal health preferences.
  • To compare inter-temporal preferences for one's own future health with those for others' future health.
  • To quantify the relative importance of health duration and the timing of future ill-health.

Main Methods:

  • Utilized discrete choice experiments (DCEs) to measure health-related inter-temporal preferences.

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  • Collected data via postal questionnaires from a UK-based sample.
  • Analyzed responses to determine implied discount rates based on choices between different health scenarios.

    • Main Results:

    • Median implied discount rates for own future health ranged from 0.055 to 0.091.
    • Median implied discount rates for others' future health were higher, ranging from 0.078 to 0.147.
    • Implied discount rates were influenced by respondent age, self-rated health, and questionnaire version.

    Conclusions:

    • Discrete choice experiments provide a viable method for assessing health inter-temporal preferences, comparable to existing techniques.
    • Individuals appear to discount others' future health more heavily than their own.
    • Further research is needed to address the issue of dominant preferences observed in a significant portion of respondents before widespread adoption of DCEs for this purpose.