Why is the Discount Rate Important in Epidemiology?
The use of a discount rate is critical in cost-effectiveness analysis (CEA) and cost-benefit analysis (CBA) of public health interventions. It helps in determining the present value of future health outcomes, enabling policymakers to decide which interventions provide the greatest benefit relative to their cost. Without discounting, there would be a bias towards interventions with benefits that accrue in the distant future, potentially leading to inefficient allocation of resources.
