Log-Rank Test
A hypothesis test comparing survival distributions between groups by comparing observed and expected event counts at each event time.
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.
Logarithmic Pool
A method combining multiple experts' probability distributions by taking a weighted geometric average rather than a simple arithmetic average.
Logistic Regression
A modelling technique estimating the relationship between predictor variables and a binary outcome, expressing results as odds ratios.
Lorenz Curve
A graph plotting the cumulative share of total income against the cumulative share of population, ranked poorest to richest, showing distribution.
Main Effect
The portion of output variance attributable to a single input parameter considered on its own, distinguished from its interaction effects with others.
Marginal Analysis
An approach to resource allocation examining the additional cost and benefit of small changes in an activity's level, rather than its total cost and benefit.
Marginal Benefit
The additional benefit gained from one more unit of a good, service, or activity.
Marginal Cost
The additional cost incurred in producing one more unit of a good or service.
Marginal Cost Estimation
The process of estimating the additional cost of producing one more unit of a good or service at the current level of output.
Marginal Cost of Healthcare
The additional cost of providing one more unit of healthcare service, such as treating one further patient.
Marginal Cost-Effectiveness
The additional cost required to produce one more unit of health effect at the margin of an intervention's current scale, distinct from its average.
Marginal Rate of Substitution
The rate at which a consumer is willing to trade one good for another while keeping the same overall level of satisfaction.
Market Clearing
A condition in which price has adjusted so that quantity supplied exactly equals quantity demanded, eliminating any surplus or shortage.
Market Equilibrium
A state in which the quantity of a good supplied equals the quantity demanded at the prevailing price, with no tendency to change.
Market Failure
A market failure occurs when market exchange does not produce an efficient allocation of resources because prices or incentives fail to reflect relevant costs, benefits, information or competitive conditions.
Markov Assumption
The defining property of a Markov model that the probability of a future transition depends only on the current state, not on prior history.
Markov Chain
A mathematical sequence of states in which the probability of moving to any next state depends only on the current state.
Markov Chain Monte Carlo
A class of algorithms generating samples from a complex probability distribution by constructing a Markov chain that converges to that distribution.
Markov Cohort Model
A Markov model tracking a hypothetical cohort collectively as proportions across health states over cycles, rather than simulating each patient separately.
Markov Microsimulation
A Markov model simulating individual patients one at a time through their health state history, capturing heterogeneity a cohort model cannot represent.