Hole, A.R. (2006) A comparison of approaches to estimating confidence intervals for willingness to pay measures. Research Report. CHE Research Paper (8). Centre for Health Economics , York, UK.
This paper describes three approaches to estimating confidence intervals for willingness to pay measures, the delta, Krinsky and Robb and bootstrap methods. The accuracy of the various methods is compared using a number of simulated datasets. In the majority of the scenarios considered all three methods are found to be reasonably accurate as well as yielding similar results. The delta method is the most accurate when the data is well-conditioned, while the bootstrap is more robust to noisy data and misspecification of the model. These conclusions are illustrated by empirical data from a study of willingness to pay for a reduction in waiting time for a general practitioner appointment in which all the methods produce fairly similar confidence intervals.
|Copyright, Publisher and Additional Information:||© 2006 Arne Risa Hole. The full text of this report can be viewed free of charge from the Centre for Health Economics web site at: http://www.york.ac.uk/inst/che/pdf/rp8.pdf|
|Keywords:||willingness to pay, confidence interval, delta method, boot-strap|
|Institution:||The University of York|
|Academic Units:||The University of York > Centre for Health Economics (York)|
|Depositing User:||Repository Officer|
|Date Deposited:||24 Apr 2006|
|Last Modified:||04 Oct 2010 17:10|
|Publisher:||Centre for Health Economics|
|Series Name:||CHE Research Paper|