Health Economics Flashcards
What is the definition of opportunity cost?
It is the sacrifice in terms of the benefits forgone from not allocating resources to next best activity
What is the definition of economic efficiency?
Resources are allocated between activities in such a way as to maximise benefit
What is the definition of equity?
Equity is concerned with the fairness or justice of the distribution of costs and benefits
What is cost-effectiveness analysis?
Outcomes measured in natural units (e.g. incremental cost per life year gained)
What is cost-utility analysis?
Outcomes measured in quality adjusted life years (e.g. incremental cost per QALY gained)
What is cost-benefit analysis?
Outcomes measured in monetary units (i.e net monetary benefit)
What is cost-minimisation analysis?
Outcomes (measured in any units) are the same in both treatments but costs are compared
