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On the (Near) Equivalence of Cost-Effectiveness and Cost-Benefit Analyses

Published online by Cambridge University Press:  10 March 2009

Charles E. Phelps  and
Alvin I. Mushlin
Charles E. Phelps
Affiliation:
University of Rochester School of Medicine and Dentistry
Alvin I. Mushlin
Affiliation:
University of Rochester School of Medicine and Dentistry
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Abstract

Many people believe that cost-effectiveness (CE) and cost-benefit (CB) analyses require different assumptions. However, when CE analysis supports decisions to use medical resources, it makes the same assumptions that CB analysis requires. They are mathematically equivalent. Differences between CE and CB hinge more on reporting style than on fundamental assumptions.

Type
General Essays
Information
International Journal of Technology Assessment in Health Care , Volume 7 , Issue 1 , Winter 1991 , pp. 12 - 21
Copyright
Copyright © Cambridge University Press 1991

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