What is the total cost for the survivors receiving treatment
Course:- Microeconomics
Reference No.:- EM131469695

Assignment Help
Assignment Help >> Microeconomics

Health Economics - Economic Evaluation Homework

The following are a few problems to solve related to Economic Evaluation. Please circle numeric answers and show all work to get credit. Please upload it when you are finished.

Q1. An article in JAMA by Mandelblatt et al (2002) compared the societal costs and benefits of human papillomavirus (HPV) testing, Pap testing, and their combination to screen for cervical cancer.  The following table summarizes some of the results (low cost to high cost).  Costs include screening and treatment costs, discounted over the individual's expected lifetime. 


Cost ($)

QALYs Saved

Incremental Cost

Incremental QALY

Incremental CE ratio (ICER)

0. No screening






1. Pap every 3 years to age 75






2. HPV every 3 years to age 75






3. Pap every 2 years to age 75






4. Pap + HPV every 3 years to age 75






5. HPV every 2 years to age 75






6. Pap + HPV every 2 years to age 75






a. Identify all dominated screening strategies.  Recall a strategy is dominated if it costs more than an equally or more effective strategy, or it is less effective than another strategy that costs the same or less. List the strategy number(s) here.

b. Fill in the table above. Calculate the incremental cost, incremental QALYs, and ICERs for all economically rational strategies (relative to strategy 0, no screening). 

c. The local health district has asked your opinion on the "best" strategy from a public health perspective. What do you tell them?

Q2. The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted. 


Treatment A

Treatment B

Mortality rate



Life expectancy for survivors

20 years

10 years

Initial treatment cost



Follow up costs, year 1



Annual follow up costs, all subsequent years



a. What is the total cost for the survivors receiving treatment A?

For decedents (assuming sudden death)? 

b. What is the total cost for survivors receiving treatment B?

For decedents?

c. What is the expected cost for those patients receiving treatment A?

d. Treatment B?

e. Draw a simple decision tree showing the costs and consequences of each treatment option.

f. What treatment should be chosen, if lowest cost per benefit is the criterion?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
An acceptance will create a contract. At common law, the acceptance had to be identical (mirror image) to the offer. A response that was not identical would amount to a counte
what is information contained in an in different curve why are such curves (a) downward slopping and b convex to origin? why does total utility increase as the consumer move
Show the effects of an increase in the money supply assuming exchange rates are flexible. Suppose Japan increases its money supply. What is the expected effect of this change
Scenario: Suppose that in 2015, a new company called "Corpus Christi Cheer Beer" begins to produce beer to sell to local restaurants.What types of learning economies would you
What is the total cost of producing q units of honey for an individual honey producer and what is the average cost of producing q units of honey per month for an individual pr
The market demand function for product of a monopolist with the total cost function TC(Q) = 2Q3-10Q2+ 30Q + 100 is given by P = 65000 - 8jQ- Find the firm's profit-maximiz
suppose all wages, salaries, welfare benefits, and other sources of income were indexed to inflatation. Would inflatation still be considerd as a problem? Why or why not?
Describe the method of contingent valuation for measuring the economic impact of crime. What are the advantages and disadvantages of this method relative to trying to measur