Bayesian models for costeffectiveness analysis in the presence of structural zero costs
Abstract
Bayesian modelling for costeffectiveness data has received much attention in both the health economics and the statistical literature in recent years. Costeffectiveness data are characterised by a relatively complex structure of relationships linking the suitable measure of clinical benefit (\eg QALYs) and the associated costs. Simplifying assumptions, such as (bivariate) normality of the underlying distributions are usually not granted, particularly for the cost variable, which is characterised by markedly skewed distributions. In addition, individuallevel datasets are often characterised by the presence of structural zeros in the cost variable. Hurdle models can be used to account for the presence of excess zeros in a distribution and have been applied in the context of cost data. We extend their application to costeffectiveness data, defining a full Bayesian model which consists of a selection model for the subjects with null costs, a marginal model for the costs and a conditional model for the measure of effectiveness (conditionally on the observed costs). The model is presented using a working example to describe its main features.
 Publication:

arXiv eprints
 Pub Date:
 July 2013
 arXiv:
 arXiv:1307.5243
 Bibcode:
 2013arXiv1307.5243B
 Keywords:

 Mathematics  Statistics Theory
 EPrint:
 15 pages, 2 figures