Comorbidities and the Willingness to Pay for Health Improvements
We show that the willingness to pay for health improvements increases with the severity and probability of occurrence of comorbidities. This result, which is obtained under mild restrictions on the shape of the utility function, has important implications for cost benefit studies applied to health care. In particular it implies that the discrimination of the elderly, believed to be implicit in cost benefit analysis, is less of a problem than commonly thought.
- I10 : Health: General
- D1 : Household Behavior and Family Economics
- D8 : Information, Knowledge, and Uncertainty