Economic evaluations of health care can help to make better medical decisions. Decisions about life and death. Our current methods are wrong. Reality is different from what we did believe. Policy decisions based on our current tools are not at all in the best interests of patients. We, scientists, have the responsibility to bridge the gap between theory and reality. Prospect theory respects reality. Now, we have all the opportunity to reliably value health. And, these values can even be obtained free of charge: we do not have to collect additional data. We can apply prospect theory immediately. What remains is to spread the word.

Additional Metadata
Keywords health care, health economics, health valuation, prospect theory, value of life
JEL Allocative Efficiency; Cost Benefit Analysis (jel D61), Criteria for Decision-Making under Risk and Uncertainty (jel D81), Health: General (jel I10)
Publisher Erasmus University Rotterdam
ISBN 978-90-5892-196-3
Persistent URL
Series ERIM Inaugural Address Series Research in Management
Journal The Review of Economic Studies
Bleichrodt, H. (2008, September 19). The Value of Health. The Review of Economic Studies. Erasmus University Rotterdam. Retrieved from