Paper #676

Título:

A consistency test of the time trade-off

Autores:

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

Data:

Marzo 2003

Resumen:

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.

Palabras clave:

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

Códigos JEL:

I10

Área de investigación:

Economía Laboral, Pública, de Desarrollo y de la Salud

Númuero serie CRES:

28

Publicado en:

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

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