--- title: "Introduction to Distributional Cost-Effectiveness Analysis" output: rmarkdown::html_vignette vignette: > %\VignetteIndexEntry{Introduction to Distributional Cost-Effectiveness Analysis} %\VignetteEngine{knitr::rmarkdown} %\VignetteEncoding{UTF-8} --- ```{r setup, include = FALSE} knitr::opts_chunk$set( collapse = TRUE, comment = "#>" ) library(dceasimR) ``` ## Why standard CEA ignores equity Standard cost-effectiveness analysis (CEA) answers one question: does this intervention generate more health per pound spent than the alternatives? It aggregates health across all patients as if a QALY gained by the most deprived person equals a QALY gained by the least deprived. This approach is silent on *who* benefits — and therefore on how interventions affect health inequalities between socioeconomic groups. ## The DCEA framework Distributional Cost-Effectiveness Analysis (DCEA), developed by Cookson, Griffin, Norheim and Culyer (2020), extends standard CEA by: 1. **Distributing** aggregate health gains across socioeconomic groups. 2. **Measuring** the impact on health inequality (SII, Atkinson index, etc.). 3. **Evaluating** the social welfare gain using inequality-aversion weights. 4. **Visualising** the equity-efficiency trade-off on an impact plane. ## When to use aggregate vs full-form DCEA | Method | When to use | Data required | |--------|-------------|---------------| | **Aggregate DCEA** | Standard TA; disease-level HES data available | ICER, incremental QALY/cost, disease ICD | | **Full-form DCEA** | Subgroup trial data available; HST or exceptional case | Per-group QALY/cost estimates | NICE (2025) recommends aggregate DCEA as the default supplementary analysis for technology appraisals where equity is relevant. ## Quick start ```{r quick-start} result <- run_aggregate_dcea( icer = 28000, inc_qaly = 0.45, inc_cost = 12600, population_size = 12000, wtp = 20000, opportunity_cost_threshold = 13000 ) summary(result) ``` ```{r impact-plane, fig.width = 6, fig.height = 5} plot_equity_impact_plane(result) ``` ## Key references - Cookson R, Griffin S, Norheim OF, Culyer AJ (2020). *Distributional Cost-Effectiveness Analysis*. Oxford University Press (ISBN:9780198838197). - NICE (2025). *Technology Evaluation Methods: Health Inequalities* (PMG36). - Love-Koh J et al. (2019). Value in Health 22(5): 518-526.