Health Economics

  • In economics, the counterfactual is generally taken to be the state of the world as it would otherwise have been, ceteris paribus, but for a specific intervention, disturbance or change of some sort that is held to be a cause of the actual (or predicted) state of the world changing. Thus, a rise in a price 'causes' a fall in the rate of use of a resource (ceteris paribus) in comparison with either what was previously the case or what would otherwise be the case.