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.

12 terms matching “Opportunity Cost”

D

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.
Distributional Cost-EffectivenessDCEA
Distributional cost-effectiveness analysis evaluates how a health intervention changes both total health and its distribution across socially relevant population groups, including the distribution of health opportunity costs.

E

Economic PrincipleEconomic Foundation, Foundational Economic Proposition
In health economics, a foundational proposition about how scarce resources are allocated, such as scarcity, opportunity cost and efficiency, underpinning the economic evaluation of health interventions.
Expected Net Benefit of SamplingENBS, Net Value of Sampling
Expected net benefit of sampling is the expected population value of the decision improvement produced by a proposed sample, minus the financial and opportunity costs of obtaining that evidence.

F

Financial BarrierCost Barrier, Affordability Barrier
An obstacle to healthcare arising from cost, including high out-of-pocket expenses, lack of insurance, or the opportunity cost of time off work.

O

Opportunity CostForgone Benefit, Alternative Cost
The value of the next best alternative forgone when a resource is allocated to a particular use.
Opportunity Cost AnalysisOpportunity-Cost Appraisal, Foregone-Benefit Analysis
A form of analysis explicitly estimating the health or value forgone elsewhere in a system when resources are allocated to a specific intervention.
Opportunity Cost AssessmentOpportunity-Cost Evaluation, Displacement Assessment
The process of estimating what health benefits or other value are displaced when a health system commits resources to a new intervention.
Opportunity Cost CriterionOpportunity-Cost Decision Rule, Health-Maximising Criterion
A decision rule stating that an intervention should only be adopted if the value it produces exceeds the value of resources it displaces elsewhere.

S

Screening EconomicsEconomics of Screening, Early-Detection Economics
The economic assessment of a screening programme’s full pathway, comparing its costs, health benefits, harms, budget implications and opportunity costs with feasible alternatives.
Shadow PriceImplicit Price, Accounting Price
The implicit value of a resource with no observable market price, reflecting the opportunity cost of using it in a particular way.
Shadow Price of HealthMarginal Value of Health, Health Opportunity Cost
The implicit value of health gains forgone when a health budget is spent inefficiently, used as a basis for setting a cost-effectiveness threshold.