Health Economic Modeling: Fact or Fiction? Useful to Policymakers in Spite of Untruths

Including a Symposium on Mary Morgan: Curiosity, Imagination, and Surprise

ISBN: 978-1-78756-424-4, eISBN: 978-1-78756-423-7

ISSN: 0743-4154

Publication date: 24 October 2018

Abstract

In this chapter, we address the question of what health economic models represent. Are they realistic? And, does model realism matter? Or, is model usefulness in terms of informing pricing, reimbursement, and prescribing decisions all policymakers care about? The usefulness of models is circumscribed given that: (1) market failure is inherent in healthcare and (2) models oversimplify the preference structure underlying choices. We suggest, however, that models which employ the ceteris paribus clause can be useful in order to isolate factors that play a role in healthcare decision-making and ultimately characterize agents’ multiattribute utility functions through discrete choice experiments. As a result, policymakers gain important knowledge about decision criteria in the healthcare system.

Keywords

Citation

Cohen, J. (2018), "Health Economic Modeling: Fact or Fiction? Useful to Policymakers in Spite of Untruths", Including a Symposium on Mary Morgan: Curiosity, Imagination, and Surprise (Research in the History of Economic Thought and Methodology, Vol. 36B), Emerald Publishing Limited, pp. 11-21. https://doi.org/10.1108/S0743-41542018000036B002

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Emerald Publishing Limited

Copyright © 2018 Emerald Publishing Limited

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