Application of time varying discounting involves several steps:
Identify the time horizon: Determine the period over which the health outcomes will be evaluated. Select the discount rates: Choose appropriate discount rates for different time periods. This could involve higher rates in the near term and lower rates in the long term. Calculate present values: Apply the selected discount rates to future health benefits and costs to compute their present values. Analyze the results: Compare the present values of different health interventions to make informed decisions.
