A Normative Model of Medical Research Resource Allocation

Emmett B. Keeler, Joseph P. Newhouse

ResearchPublished 1970

This memorandum is concerned with the allocation of resources to biomedical research. In particular, it asks the question: How much should the country spend on such research? A simple mathematical model of individuals' preferences is proposed that gives reasonable predictions to qualitative questions posed. In lieu of obtaining sample data about consumer preferences, the model is used to determine what biomedical research is worth to consumers. The answer is that the probability of achieving future advances appears to be sufficiently low to warrant the conjecture that the nation is already spending more for biomedical research than it is worth to consumers. This revision expands the original by explicitly treating uncertainty rather than assuming it away. In addition, the first version assumed, incorrectly, that the important parameter a could not be greater than one. This revision corrects that assumption. Certain other less important errors also have been corrected.

Order a Print Copy

Format
Paperback
Page count
23 pages
List Price
$20.00
Buy link
Add to Cart

Document Details

  • Copyright: RAND Corporation
  • Availability: Available
  • Year: 1970
  • Print Format: Paperback
  • Paperback Pages: 23
  • Paperback Price: $20.00
  • Document Number: RM-6108-1-RC

Citation

RAND Style Manual
Keeler, Emmett B. and Joseph P. Newhouse, A Normative Model of Medical Research Resource Allocation, RAND Corporation, RM-6108-1-RC, 1970. As of September 13, 2024: https://www.rand.org/pubs/research_memoranda/RM6108-1.html
Chicago Manual of Style
Keeler, Emmett B. and Joseph P. Newhouse, A Normative Model of Medical Research Resource Allocation. Santa Monica, CA: RAND Corporation, 1970. https://www.rand.org/pubs/research_memoranda/RM6108-1.html. Also available in print form.
BibTeX RIS

This publication is part of the RAND research memorandum series. The research memorandum series, a product of RAND from 1948 to 1973, included working papers meant to report current results of RAND research to appropriate audiences.

This research in the public interest was supported by RAND using discretionary funds made possible by the generosity of RAND's donors, the fees earned on client-funded research, or independent research and development (IR&D) funds provided by the Department of Defense.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.