Extended Dominance Analysis
The process of identifying interventions subject to extended dominance by comparing each option's ICER against that of the next most effective alternative.
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.
Externality
An externality is a cost or benefit arising from production or consumption that affects third parties and is not fully reflected in the decision-maker’s private costs or benefits.
Financial Ratio
A quantitative measure derived from an organisation's financial statements, used to assess liquidity, solvency, or profitability.
Full Economic Evaluation
An economic evaluation comparing two or more alternatives in terms of both costs and consequences, unlike a partial evaluation examining costs or outcomes alone.
Fully Incremental Analysis
A method comparing more than two mutually exclusive interventions by ranking them by effectiveness and calculating each option's ICER against the next best alternative.
Fundamental Cost Analysis
A cost analysis limited to the most basic categories of direct medical cost, without extension into indirect or intangible categories.
Future Value
The value a present sum of money will grow to after a specified period, given a particular rate of return.
Game Theory Health
The application of game theory, the study of strategic interaction, to problems such as price negotiations, provider competition, or vaccination decisions.
Generalized Cost-Effectiveness
A form of cost-effectiveness analysis comparing a broad set of interventions against a common null counterfactual rather than against current practice.
Gini Coefficient Health
An adaptation of the Gini coefficient, originally measuring income inequality, applied to measure inequality in a health outcome, such as life expectancy.
Hale Calculation
The process of computing health-adjusted life expectancy, combining mortality data with health state prevalence and severity weights into one summary measure.
Half-Cycle Correction
An adjustment in Markov model based evaluations accounting for events occurring, on average, mid-cycle rather than precisely at its start or end.
Health Behaviour
An action or pattern of action that affects an individual's health, healthcare use or response to prevention and treatment.
Health Capital
The stock of health an individual holds at a given time, modelled as a durable asset that yields healthy time and depreciates with age.
Health Depreciation
The rate at which an individual's stock of health capital declines over time, generally assumed to accelerate with age.
Health Investment
Resources an individual or system devotes to maintaining or improving health capital, including healthcare use, exercise, and other health-promoting behaviour.
Health Production Function
A theoretical relationship describing how inputs such as healthcare, education, income, and lifestyle combine to produce health as an output.
Health State Utility Value
A number, typically anchored between zero for dead and one for full health, representing the preference-based value of a specific health state.
Health State Valuation
The process of assigning a preference-based utility value to a described health state, typically using a choice-based or rating-based method.
Health-Adjusted Life Year
A general term for outcome measures, including the QALY and DALY, combining length of life with a weighting for quality or disability into one unit.