Discounted Utility

Definition

Health Economics

  • It has been common in health economics to discount future health states, or the utility of such states, in much the same way as future consumption has been discounted in mainstream normative economics. However, there is continuing disagreement about the propriety of this, whether discount rates should be constant or vary, whether intertemporal complementarity can be adequately represented in dis counting procedures, whether costs and benefits should be discounted at the same rates (constant or otherwise) in cost-effectiveness analysis and related studies.
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