Random Parameter Model
A random parameter model, or mixed logit, is a discrete choice model in which preference weights vary across people, estimated as a mean and a spread.
Encyclopaedia
Explore comprehensive, evidence-informed explanations of key health economics concepts, including their development, application and relationships to other concepts. Published entries are validated through human expert review.
Concepts, entries and ontology terms
A concept page is a published entry on the wiki. Some concepts also have a full encyclopaedia article. The Health Economics Ontology (HEO) holds every concept, including dictionary terms without an article, so it is larger than the list of published pages. The knowledge graph shows how concepts relate to each other.
Ratio Scale
Ratio scale is a level of measurement with equal intervals and a true zero, such as cost or survival time, so a claim of twice the cost is meaningful.
Reference Case
A reference case is the set of methods, such as perspective, outcome measure and discounting, that HTA bodies like NICE expect economic evaluations to use.
Reference Case Requirement
Reference case requirement is one rule in an HTA reference case, such as NICE's 3.5% discount rate, fixing a method like perspective or outcome measure.
Relapse Period (REL)
Relapse period (REL) is the Q-TWiST health state covering survival time after relapse or progression, weighted by its own utility.
ReQoL-UI
ReQoL-UI is a preference-based index scoring seven ReQoL items as utilities, so mental health studies can estimate QALYs for cost-utility analysis.
Resource
Resource, in health economics, means any scarce input such as staff time, medicines, beds or equipment, whose use in one place denies it to other uses.
Response Level
Response level is one of the ordered answer categories of an instrument dimension or item, such as the five levels of each EQ-5D-5L dimension.
Responsiveness
Responsiveness is the ability of a health outcome measure, such as a PROM or utility instrument, to detect real change over time in the health it measures.
Return on Assets
Return on assets (ROA) is net income divided by average total assets, a ratio used to judge how well hospitals and health systems use their assets.
Return on Equity
Return on equity (ROE) is net income divided by owners' equity, used in health economics to judge the profitability of hospitals, insurers and drug firms.
Return on Investment
Return on investment (ROI) is a health programme's monetary benefits minus its costs, divided by its costs, reported as a ratio or a percentage.
Reynolds-Smolensky
The Reynolds-Smolensky index measures how far a tax or health care payment changes income inequality, comparing inequality before and after the payment.
Risk Aversion
Risk aversion is a preference for a sure outcome over a gamble with the same expected value, seen in health insurance demand and cautious treatment choice.
Risk Premium
A risk premium is the willingness to pay, above a risk's expected cost, to replace the risk with certainty, as when a household buys health insurance.
Scarcity
Scarcity is the condition in which health care resources, such as funding, staff and beds, cannot meet every competing need, so choices must be made.
Scitovsky Paradox
The Scitovsky paradox is a welfare economics result in which a policy and its reversal both pass the Kaldor-Hicks test used in cost-benefit analysis.
Scope Efficiency
Scope efficiency is whether a hospital or health system saves cost by providing several services together instead of in separate, specialised units.
Screening Theory
Screening theory explains how an insurer or payer that cannot observe risk or cost offers a menu of contracts so each type reveals itself by its choice.
Self-Control Concept
The management of conflict between immediate incentives or effort and longer-term goals, especially when the timing of a choice changes what a person prefers to do.