The economic evaluation of health policies frightens those who do not want to assimilate health to a marketable commodity. We argue that this fear is justified about some criteria but does not warrant a principled objection to all kinds of economic evaluations. With the example of a criterion based on the “equivalent income”, we show how the special value of health and equity considerations can be properly taken into account in cost-benefit analysis.
JEL Classification: D63, H21, H51, I18.
- cost-benefit analysis
- social welfare function
- equivalent income