healthiar (version 0.2.3)

monetize: Monetize health impacts

Description

This function monetizes health impacts

Usage

monetize(
  output_attribute = NULL,
  impact = NULL,
  valuation,
  discount_rate = NULL,
  discount_shape = "exponential",
  n_years = NULL,
  inflation_rate = NULL,
  info = NULL
)

Value

This function returns a list containing:

1) monetization_main (tibble) containing the main monetized results;

• monetized_impact (numeric column)

• discount_factor (numeric column) calculated based on the entered discount_rate

• And many more

2) monetization_detailed (list) containing detailed (and interim) results.

• results_by_year (tibble)

• health_raw (tibble) containing the monetized results for each for each combination of input uncertainty that were provided to the initial attribute_health() call

If the argument output_attribute was specified, then the two results elements are added to the existing output.

Arguments

output_attribute

List produced by healthiar::attribute_health(), healthiar::attribute_lifetable() or healthiar::compare() as results.

impact

Numberic value referring to the health impacts to be monetized (without attribute function). If a Numberic vector is entered multiple assessments (by year) will be carried out. Be aware that the value for year 0 (current) must be entered, while n_years does not include the year 0. Thus, length of impact = n_years + 1.

valuation

Numberic value referring to unit value of a health impact.

discount_rate

Numeric value showing the discount rate for future years. If it is a nominal discount rate, no inflation is to be entered. If it is a real discount rate, the result can be adjusted by entering inflation in this function.

discount_shape

String referring to the assumed equation for the discount factor. By default: "exponential". Otherwise: "hyperbolic_harvey_1986" or "hyperbolic_mazur_1987".

n_years

Numeric value referring to number of years in the future to be considered in the discounting and/or inflation. Be aware that the year 0 (without discounting/inflation, i.e. the present) is not be counted here. If a vector is entered in the argument impact, n_years does not need to be entered (length of impact = n_years + 1).

inflation_rate

Numeric value between 0 and 1 referring to the annual inflation (increase of prices). Only to be entered if nominal (not real) discount rate is entered in the function. Default value = NULL (assuming no nominal discount rate).

info

String, data frame or tibble providing information about the assessment. Only attached if impact is entered by the users. If output_attribute is entered, use info in that function or add the column manually. Optional argument.

Author

Alberto Castro & Axel Luyten

Details

Methodology

This function monetize health impacts valuating them and applying discounting Frederick2002_jel,Harvey1986_ms,Mazur1987_bookhealthiar and/or inflation Brealey2023_bookhealthiar.

One of the following three discount shapes can be selected:

• Exponential Frederick2002_jelhealthiar

• Hyperbolic as Harvey1986_ms;textualhealthiar

• Hyperbolic as Mazur1987_book;textualhealthiar

Detailed information about the methodology (including equations) is available in the package vignette. More specifically, see chapters:

• Monetization

References

See Also

• Upstream: attribute_health, attribute_lifetable, compare

• Alternative: get_inflation_factor, get_discount_factor, cba

Examples

# Goal: monetize the attributable impacts of an existing healthiar
# assessment
output_attribute <- attribute_health(
erf_shape = "log_linear",
rr_central = exdat_pm$relative_risk,
rr_increment = 10,
exp_central = exdat_pm$mean_concentration,
cutoff_central = exdat_pm$cut_off_value,
bhd_central = exdat_pm$incidence
)

results <- monetize(
  output_attribute = output_attribute,
  discount_shape = "exponential",
  discount_rate = 0.03,
  n_years = 5,
  valuation = 50000 # E.g. EURO
)

# Attributable COPD cases its monetized impact
results$monetization_main |>
  dplyr::select(impact, monetized_impact)