Cardinal Scales for Health Evaluation

Authors:
Charles M. Harvey;Lars Peter Østerdal
Affiliations:
Department of Decision and Information Sciences, University of Houston, Houston, Texas 77204;Department of Economics, University of Copenhagen, DK-1353 Copenhagen K, Denmark
Venue:
Decision Analysis
Year:
2010

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Abstract

Policy studies often evaluate health for an individual or for a population by using measurement scales that are ordinal scales or expected-utility scales. This paper develops scales of a different type, commonly called cardinal scales, that measure changes in health. Also, we argue that cardinal scales provide a meaningful and useful means of evaluating health policies. Thus, we develop a means of using the perspective of early neoclassical welfare economics as an alternative to ordinalist and expected-utility perspectives.