An implicit price of a DALY for use in a cost-benefit analysis of ARVs
Abstract:This article uses the revealed preference approach to estimate the price for a Disability Adjusted Life Year (DALY) implied by grant decisions by the Global Fund for AIDS, tuberculosis (TB) and malaria (GFATM). A cost-benefit criterion is used that requires the DALY price exceed the cost-effectiveness ratio. The estimated price was $6300 for a DALY saved from any disease, but it was $11 900 from a DALY saved specifically from HIV/AIDS. Estimates of the cost-effectiveness ratios of Antiretroviral Drug Therapies (ARVs) in the literature were examined. At the DALY prices implicit by GFATM decisions, ARVs would be socially worthwhile.
Document Type: Research Article
Affiliations: Department of Economics, Fordham University, Bronx, NY, USA
Publication date: 2011-04-01