WILLINGNESS-TO-PAY FOR LIPID-LOWERING - A HEALTH PRODUCTION FUNCTION-APPROACH

This paper reports the results of an experiment of measuring willingne ss to pay (WTP) for lipid lowering. WTP is derived from a theoretical model of health risk reductions, using a health production function ap proach. A survey of about 700 persons randomized into a lipid lowering trial in Sweden is used to estimate WTP. The willingness to give up t ime (WTGT) to take part in a lipid lowering programme is also measured in the survey, to assess its relationship to WTP. The response rates on the WTP and WTGT questions are 94% and 96%, respectively, and the p atients are on average prepared to pay about Skr 350 per month or devo te about 5 h of leisure time per week to get normal lipid levels. The correlation of WTP and WTGT is 0.45 and highly significant. The result s of regression analyses of WTP and WTGT are in accordance with the th eoretical predictions with a higher valuation for a greater perceived difference in health status with and without treatment. The income ela sticity is also positive as expected.