The criterion of cost-effectiveness in health management may be given a welfaretheoretical justification if people are risk neutral with respect to life years. With risk aversion, the optimal allocation of health expenditures change: Compared to the costeffective allocation, more resources...

Cost effectiveness is a criterion that is often recommended for prioritizing between different types of health care. A modified use of this criterion can be justified as the outcome of a choice that is made “behind a veil of ignorance”. Reduced health will in many cases also gives an income...

We report results of a survey of a representative sample of the German population in which respondents were asked in various scenarios for their willingness-to-pay (WTP) for a gain of one quality-adjusted life year. While one version of the survey exactly copied the setting (online survey) and...