Paper #676

Títol:

A consistency test of the time trade-off

Autors:

Han Bleichrodt, José Luis Pinto i José María Abellán-Perpiñán

Data:

Març 2003

Resum:

This paper tests the internal consistency of time trade-off utilities. We find significant violations of consistency in the direction predicted by loss aversion. The violations disappear for higher gauge durations. We show that loss aversion can also explain that for short gauge durations time trade-off utilities exceed standard gamble utilities. Our results suggest that time trade-off measurements that use relatively short gauge durations, like the widely used EuroQol algorithm (Dolan 1997), are affected by loss aversion and lead to utilities that are too high.

Paraules clau:

Cost-Utility Analysis, Time Trade-Off, Loss Aversion

Codis JEL:

I10

Àrea de Recerca:

Economia Laboral, Pública, de Desenvolupament i de la Salut

Número sèrie CRES:

28

Publicat a:

Journal of Health Economics, 2003, vol. 22, issue 6, pp. 1037-1052

Descarregar el paper en format PDF