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.
D
- Differential DiscountingDifferential Discount Rates, Split-Rate Discounting
- The practice of applying different discount rates to costs and health outcomes within an economic evaluation, rather than discounting both at the same rate.
- Discount RateAnnual Discount Percentage, Time-Value Rate, Discounting Rate
- The annual percentage applied to future costs or health outcomes to express them in present-value terms and permit consistent comparison across time.
- Discount Rate SelectionChoosing the Discount Rate, Rate Justification
- The methodological decision on which discount rate to apply in an economic evaluation, informed by the social opportunity cost of capital and relevant guidance.
- Discounting CostsCost Discounting, Present-Valuing Costs
- The application of a discount rate to future costs within an economic evaluation, converting them into a common present-day value.
- Discounting HealthHealth Outcome Discounting, Present-Valuing Benefits
- The application of a discount rate to future health outcomes within an economic evaluation, converting them into a common present-day value.
I
- Internal Rate of ReturnRate of Return, Discounted Return Rate
- The discount rate at which the net present value of a stream of cash flows equals zero, used to summarise an investment's return.
M
- Methodological UncertaintyMethods Uncertainty, Analytic Uncertainty
- Uncertainty arising from the choice of analytical methods or structural assumptions, such as discount rate, rather than the numerical values used within a fixed method.
P
- Present ValueDiscounted Value, Present Worth
- The current worth of a future sum of money or cash flow stream, found by discounting each future amount using a specified discount rate.
- Private Discount RateIndividual Discount Rate, Market Discount Rate
- The rate at which an individual personally discounts future costs and benefits, typically higher than the social discount rate used in policy evaluation.
S
- Social Discount RateSocial Time Preference Rate, Societal Discount Rate
- The rate at which government or society as a whole is considered to discount future costs and benefits, used in public sector evaluation.