Does economic theory have practical value?
State University – Higher School of Economics
International College of Economics and Finance
English Language
Essay
“Does economic theory have practical value?”
____________________
Group 2, 2 course
Moscow, 2013
Does economic theory have practical value?
Much of the usefulness of economic theory can be found in its application to our personal economic life. That is to say, lurking behind such concepts as opportunity cost, present value, supply and demand, and competitive markets are applications to our everyday life. The goal of this essay is to understand the most important principles that we will learn by using Economics Today, but also to allow us to apply them to problems that face us today, tomorrow, and for the rest of our life.
An effective treatment already exists for many diseases. In these cases the effectiveness of a new treatment may be established by showing that the new treatment is as effective as the old one. For an economic evaluation accompanying a clinical equivalence or no inferiority trial it is important to decide before the start of the study on the appropriate research question. In many cases the objective of the economic evaluation will be to show equivalence or no inferiority of the cost-effectiveness of the treatments. This has major implications for the design and analysis of the economic evaluation. In this essay we propose methods for the analysis of economic equivalence and no inferiority studies that are similar to the methods applied to clinical equivalence and no inferiority trials. Furthermore, cost-effectiveness planes prove to be a valuable tool in the interpretation of the results in an economic equivalence or no inferiority trial. The concepts described in the essay are illustrated using the results from an economic no inferiority trial.
Perhaps we have been told by well-meaning friends or relatives that we should strive for perfection. A common proverb is:
"If
International College of Economics and Finance
English Language
Essay
“Does economic theory have practical value?”
____________________
Group 2, 2 course
Moscow, 2013
Does economic theory have practical value?
Much of the usefulness of economic theory can be found in its application to our personal economic life. That is to say, lurking behind such concepts as opportunity cost, present value, supply and demand, and competitive markets are applications to our everyday life. The goal of this essay is to understand the most important principles that we will learn by using Economics Today, but also to allow us to apply them to problems that face us today, tomorrow, and for the rest of our life.
An effective treatment already exists for many diseases. In these cases the effectiveness of a new treatment may be established by showing that the new treatment is as effective as the old one. For an economic evaluation accompanying a clinical equivalence or no inferiority trial it is important to decide before the start of the study on the appropriate research question. In many cases the objective of the economic evaluation will be to show equivalence or no inferiority of the cost-effectiveness of the treatments. This has major implications for the design and analysis of the economic evaluation. In this essay we propose methods for the analysis of economic equivalence and no inferiority studies that are similar to the methods applied to clinical equivalence and no inferiority trials. Furthermore, cost-effectiveness planes prove to be a valuable tool in the interpretation of the results in an economic equivalence or no inferiority trial. The concepts described in the essay are illustrated using the results from an economic no inferiority trial.
Perhaps we have been told by well-meaning friends or relatives that we should strive for perfection. A common proverb is:
"If