A theoretical framework for TTO valuations of health.
This paper proposes a theoretical framework, drawing on Hicks utility theory, for the Time Trade-off (TTO) method conventionally used to value health states. We briefly describe that theory and posit four distinctive TTO valuation approaches suggested by it: each of compensating variation and equivalent variation for both gains and losses in health, with valuation of health states in each case derived from trade-offs between health and length of life. Recent developments and research on TTO valuation are placed in the context of this framework.
Buckingham
Ken
K
Department of Preventive and Social Medicine, Otago University, New Zealand.
Devlin
Nancy
N
D001294:Attitude to Health; D006304:Health Status; D006801:Humans; D008136:Longevity; D008962:Models, Theoretical; D019057:Quality-Adjusted Life Years