Marginal or Incremental Analysis, Cost-Effectiveness Ratio

A marginal or incremental analysis focuses on the additional costs and additional outcomes associated with a change of some kind. For a marginal analysis, this change concerns a slight (marginal) increase or decrease in service. For an incremental analysis, this change generally concerns the introduction of a new intervention. The aim of both types of analysis is to establish the impact of the change on costs and outcomes relative to the situation prior to the change. This entry introduces the concepts of marginal or incremental analysis and reviews the importance of adopting such an approach to measuring the impact of changes for economic evaluation.

Marginal or Incremental Analysis

A marginal analysis is concerned with the additional costs and additional outcomes achieved from a marginal (unitary) change in ...

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