Bayesian Cost-Effectiveness Analysis Using Individual-Level Data is Sensitive to the Choice of Uniform Priors on the Standard Deviations for Costs in Log-Normal Models.

ABSTRACT:

Background

Bayesian cost-effectiveness analysis (CEA) requires the specification of prior distributions for all parameters to be empirically estimated via Bayes' rule. When costs are modelled via Log-Normal distributions, Uniform prior distributions are commonly applied on the logarithm-scale standard deviations for costs due to the ease of implementation. However, the consequences of placing wide Uniform priors on standard deviations of log costs for the interpretation of original-scale CEA results remain unclear. The purpose of our study is to explore the impact of using Uniform priors for the standard deviations of cost data on CEA conclusions when costs are assumed to be log-normally distributed.

Methods

The analysis has been performed using individual-level cost-utility

SUBMITTER: Ling X 

PROVIDER: S-EPMC12534244 | biostudies-literature | 2025 Nov

REPOSITORIES: biostudies-literature