University of Sheffield

Tony O'Hagan - Academic pages - Abstracts


Inference for the C/E Acceptability Curve and C/E Ratio

Anthony O'Hagan, John W. Stevens and Jacques Montmartin

Statistical Services Unit, University of Sheffield, Sheffield, England and Astra Charnwood, Loughborough, England

Publication details: PharmacoEconomics, 17, 339-349, 2000.


We consider Bayesian and frequentist inference methods for measures of incremental cost-effectiveness in data obtained via a clinical trial. The most useful measure is the C/E acceptability curve. Recent publications on Bayesian estimation have assumed a normal posterior distribution, which ignores uncertainty in estimated variances, and suggest unnecessarily complicated methods of computation. We present a simple Bayesian computation for the C/E acceptability curve and a simple frequentist analogue. Our approach takes account of errors in estimated variances, resulting in calculations based on t distributions rather than normals.

If inference is required about the C/E ratio, we argue that the standard frequentist procedures are flawed and present instead a Bayesian interval.

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Updated: 16 February 2000
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