PRIVATE VERSUS SOCIAL OPPORTUNITY COST OF TIME - VALUING TIME IN THE DEMAND FOR HEALTH-CARE

In this paper we examine whether the current method of valuing time wi thin economic appraisals is appropriate. The cost to society of time t aken to use health care may differ from the private opportunity cost o f such time. However, demand for health care may be affected by the pr ivate opportunity time cost and not by the value of time to society. I n this paper we show that the private opportunity cost of time is a be tter predictor of demand for a screening service than the societal app roach. It is important, therefore, to use the private opportunity cost of time when assessing the demand for, and impact of, a health care i ntervention.