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Health-related externalities: evidence from a choice experiment
Jeremiah Hurley1, Emmanouil Mentzakis
1Department of Economics and Centre for Health Economics and Policy Analysis, McMaster University, Kenneth Taylor Hall, Rm 430, 1280 Main Street West, Hamilton, Ontario L8S 4M4, Canada. hurley@mcmaster.ca
Abstract:
Health-related external benefits are of potentially large importance for public policy. This paper investigates health-related external benefits using a stated-preference discrete-choice experiment framed in a health care context and including choice scenarios defined by six attributes related to a recipient and the recipient's condition: communicability, severity, medical necessity, relationship to respondent, location, and amount of contribution requested. Subjects also completed a set of own-treatment scenarios and a values-orientation instrument. We find evidence of substantial health-related external benefits that vary as expected with the scenario attributes and subjects' value orientations. The results are consistent with a number of hypotheses offered by the general theoretical analysis of health-related externalities and the analysis of externalities specific to health care.
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