ABSTRACT
Economics is concerned with the allocation of resources in a world where resourcesare finite and demands are potentially infinite. Health economics, a subdisciplineof economics, focuses on the allocation of healthcare resources within the context of resource scarcity. Health economic evaluations are a set of tools used to assess the efficiency, or value for money, of health technologies. They require that both costs and health benefits are assessed to determine whether incremental health gains justify the costs. Cost-effectiveness analyses allow medicines that produce a common unidimensional health benefit, such as life-years gained or symptom-free days, to be compared. Cost-utility analyses, where outcomes are measured in terms of qualityadjusted life-years (QALYs), allow economic considerations to be made across a wide range of interventions. In cost-benefit analyses, attempts are made to value all the relevant costs and benefits in monetary terms.
