= Cost-effectiveness analysis
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<Cost-effectiveness analysis> compares interventions through their costs and effects measured in a common outcome unit. Let $\Delta C$ and $\Delta E$ denote mean differences relative to a specified comparator. A positive effect increment with nonpositive cost increment gives dominance; the reverse signs give a dominated intervention. A tradeoff in the positive-positive quadrant requires a willingness-to-pay threshold per outcome unit. <Randomized controlled trials> can estimate these differences, but their joint <sampling distribution> is needed to express uncertainty. Outcome units, time horizon and costing perspective must be specified; a survival-day increment is not automatically a quality-adjusted outcome.
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