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Quality of life of alcohol-related diseases and road accidents in Switzerland: An economic assessment

Quality of life of alcohol-related diseases and road accidents in Switzerland: An economic assessment France Priez The University of North Carolina at Chapel Hill Neuchâtel October 24th 2003. Social cost of substance abuse.

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Quality of life of alcohol-related diseases and road accidents in Switzerland: An economic assessment

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  1. Quality of life of alcohol-related diseases and road accidents in Switzerland: An economic assessment France PriezThe University of North Carolina at Chapel Hill Neuchâtel October 24th 2003

  2. Social cost of substance abuse Burden for the society resulting from substance abuse and expressed in monetary units Economic costs • Direct costs • Indirect costs Quality of life

  3. Quality of life and alcohol abuse Impact on health e.g. Road accidents Diseases Impact on behavior e.g. Drunkeness Addiction

  4. Impact of accidents and diseases on quality of life • Physical consequences • Psychological impact • Changes in life style • Loss of life (if death)

  5. Selection of diseases

  6. How to measure quality of life • SurveyAsk participants to tell what is their quality of life with specific accidents or diseases • Monetary measure = human costsWillingness to pay to avoid accident or disease • Scale = utility indexFull health = 1, Death = 0, Specific condition = ?

  7. Methods • Welfare Economics • Expressed preferences • Contingent valuation • Standard gamble

  8. Contingent Valuation • Only for ENT cancer and hypertension (+ road accidents from former study) • Describe health condition and main risk factors • Present the average risk of suffering from such condition by gender • Contingent market:How much are you willing to pay to reduce your risk of suffering from such disease or having such accident

  9. No treatment = Health condition Decision p Full health Treatment 1- p Death Standard Gamble • For ENT cancer, hypertension, liver cirrhosis and chronic pancreatic • Quality of life measured by a utility index between 1 (full health) and 0 (death)

  10. Methodological decisions • Selection and description of diseases • Pre-tests, in-depth interviews • Target population: general population • Health as private good • Ex-ante estimation • Sensitivity analysis: risk variations of 95% & 50% • Face-to-face interview • Quotas sampling

  11. Two-step estimation • 1st step (ENT cancer and hypertension) Contingent valuation and standard gamble Human costs = - f [ utility index ] • 2nd step (liver cirrhosis and chronic pancreatic) Standard gamble only Plug utility index in above function to get human costs

  12. Quota sampling • Reasons: face-to-face interviews & visual cards • Representative sample of Swiss population 18+ • Four quotas: • Gender • Rural versus urban • Age group • Socio-economic category

  13. Sample sizes

  14. Mean utility index of alcohol-related diseases

  15. Mean human costs of alcohol-related diseases

  16. Total human costs of alcohol-related diseases and road accidents in Switzerland in 1998 Economic costs 2,191.7

  17. The End

  18. Sample characteristics

  19. Contingent Valuation (2) • Advantages • Theoretical foundations • Flexible • Price of non-market goods • Disadvantages • ‘Fictive’ market • Potential biases • Potentially all costs faced by individuals

  20. Standard Gamble (2) • Advantages • Theoretical foundations • Measures quality of life only • No direct link with income • Disadvantages • ‘Fictive’ market • Potential biases • No direct monetary value

  21. Utility index and human costs of alcohol-related diseases

  22. Alcohol-related road accidents in Switzerland in 1998

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