Analysts wish to evaluate alternative surgical procedures for spinal cord injuries. The procedures have various probabilities of

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Analysts wish to evaluate alternative surgical procedures for spinal cord injuries. The procedures have various probabilities of yielding the following results:

Full recovery (FR) — the patient regains full mobility and suffers no chronic pain. 

Full functional recovery (FFR) — the patient regains full mobility but suffers chronic pain that will make it uncomfortable to sit for periods of longer than about an hour and will interfere with sleeping two nights per week, on average.

Partial functional recovery (PFR) — the patient regains only restricted movement that will limit mobility to slow-paced walking and will make it difficult to lift objects weighing more than a few pounds. Chronic pain is similar to that suffered under full functional recovery.

Paraplegia (P) — the patient completely loses use of legs and would, therefore, require a wheelchair or other prosthetic for mobility, and suffers chronic pain that interferes with sleeping four nights per week, on average. Aside from loss of the use of his or her legs, the patient would regain control of other lower body functions.

a. Describe how you would construct a quality-of-life index for these surgical outcomes by offering gambles to respondents. Test your procedure on a classmate, friend, or other willing person.

b. Assume that the index you construct on the basis of your sample of one respondent is representative of the population of patients. Use the index to measure the effectiveness of each of three alternative surgical procedures with the following distributions of outcomes:

c. Imagine that the surgical procedures involved different life expectancies for the various outcomes. Discuss how you might revise your measure of effectiveness to take account of these differences.

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Cost Benefit Analysis Concepts and Practice

ISBN: 978-0137002696

4th edition

Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer

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