ANALYSIS OF THE SELECTION OF THE SOCIAL DISCOUNT RATE IN COST-BENEFITS ANALYSIS FROM HEALTH ECONOMY PERSPECTIVE

Abstract

Health economics is a branch of science that examines in order to benefit more effectively from the resources allocated to the health sector. The aim of this study is to evaluate the concept of social discount rate, which is used as one of the economic evaluation methods in health economics and used in cost-benefit analysis, which is a tool for the efficient use of resources allocated to the health sector. In this study, which is a compilation, a literature review is carried out on national and international, theoretical and empirical studies on the social discount rate, and another analysis is carried out to evaluate the selection methods of the social discount rate and what the appropriate social discount rate should be used in health projects. While conducting the analysis, a review of the academic literature on the social discount rate, the discount rates applied in economic evaluations in health around the world, and globally guiding and instructions were performed. In this context, within the framework of an economic perspective, the social discount rate has been tried to be evaluated conceptually in terms of the health sector, the proposed discount rates and the factors affecting the selection of the discount rate and the reasons for the uncertainty in the selection of the rate have been evaluated. As a result, it can be said that the optimal use of public resources for the social discount rate, which is directed by political preferences, and its effects on the distribution of these resources between generations have consequences that spread throughout the society.