On the (Near) Equivalence of Cost-Effectiveness and Cost-Benefit Analyses

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Abstract

Many people believe that cost-effectiveness (CE) and cost-benefit (CB) analyses require different assumptions. However, when CE analysis supports decisions to use medical resources, it makes the same assumptions that CB analysis requires. They are mathematically equivalent. Differences between CE and CB hinge more on reporting style than on fundamental assumptions.

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Discussion

Journals

International Journal of Technology Assessment in Health Care

Institutions

University of Rochester

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