We use a simple lifetime utility maximization model to study the problem of medical resource allocation. This model leads to a welfare specification with a QALY (quality-adjusted life-year) component that captures an individual's preferences over both life expectancy and health status. The goal...

Utilizing a panel data set of 50 US states, this note investigates nonstationarity and cointegration of health care expenditures and gross state products (GSP). Both the individual state-based method and the recent panel data method are applied. Allowing for structural breaks in the test, we...

Previous studies demonstrated that the willingness to pay (WTP) for reducing the risk of a targeted disease increases with the severity of a comorbidity condition. They evaluated the WTPs at positions where otherwise identical individuals who have unequal comorbidity conditions all have the same...