Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
A
- Average CostCost per Unit, Mean Cost
- Total cost divided by the quantity of output produced, giving the cost per unit of service.
- Average Cost EstimationMean Cost Estimation, Average Costing
- The process of estimating cost per unit of service by dividing total observed cost by units delivered, without separating fixed and variable components.
- Average Cost-Effectiveness RatioAverage Cost-Effectiveness, ACER
- The total cost of an intervention divided by its total health effect, calculated for each option rather than as a comparison.
D
- Diseconomies of ScaleRising Average Cost, Scale Inefficiency
- A situation in which average cost of production rises as output increases, often due to coordination difficulties or capacity constraints.
E
- Economies of ScaleScale Economies, Falling Average Cost
- A situation in which average cost of production falls as output rises, typically because fixed costs are spread across greater volume.
- Expected LossExpected Opportunity Loss, Probability-Weighted Loss
- The probability-weighted average cost of making an incorrect decision under uncertainty, calculated across all possible states and their probabilities.