Valuing Reductions in Morbidity Risk: WTP and QALYs

Investigating the relationship between WTP and QALYs and the differences in their theoretical foundations

Kevin Haninger


There are two conventional metrics for valuing reductions in mortality risk: individual willingness to pay (WTP) to reduce risk and the expected gain in quality-adjusted life years (QALYs). We are investigating the difference in theoretical foundations and the empirical relationship between the measures using stated-preference surveys of the American population.