On the welfare theoretic foundation of CEA: comment.
This is a comment on a recent paper by Bengt Liljas (Eur J Health Econ 11:5-13, 2010) in this Journal. The author's analysis is flawed because he fails to take the envelope theorem into account. As a bottom line, we conclude that from a welfare theoretic point of view, future consumption and future labor hours should not be considered in a valid CEA.
Department of Economics, University of Konstanz, Fach 135, 78457, Constance, Germany, Friedrich.Breyer@uni-konstanz.de.
Friedrich
F
Breyer
D003362:Cost-Benefit Analysis / Q000191:economics* / Q000706:statistics & numerical data; D003657:Decision Making; D005858:Germany; D006304:Health Status; D006801:Humans; D018803:Models, Economic; D019057:Quality-Adjusted Life Years; D012946:Social Welfare / Q000191:economics* / Q000706:statistics & numerical data