The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models

Economic evaluations that incorporate value-of-information analysis frequently conclude that the greatest information value relates to replicating short-term clinical trials. This study builds on recent guidance relating to extrapolation in economic evaluation by assessing the impact of alternative...

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Main Authors: Doug Coyle, Kathryn Coyle
Format: Article
Language:English
Published: SAGE Publishing 2025-05-01
Series:MDM Policy & Practice
Online Access:https://doi.org/10.1177/23814683251340058
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author Doug Coyle
Kathryn Coyle
author_facet Doug Coyle
Kathryn Coyle
author_sort Doug Coyle
collection DOAJ
description Economic evaluations that incorporate value-of-information analysis frequently conclude that the greatest information value relates to replicating short-term clinical trials. This study builds on recent guidance relating to extrapolation in economic evaluation by assessing the impact of alternative approaches to representing the uncertainty around unobserved/extrapolated data with respect to incremental outcomes and value of information. When the uncertainty over unobserved and observed data is considered distinct but correlated (i.e., has a joint distribution), it is demonstrated that the value to replicating short-term clinical studies is lessened and that further studies relating to the unobserved periods likely provide more value. Highlights Current practice in economic evaluation often involves the inappropriate specification of uncertainty with respect to unobserved data. Appropriate specification of uncertainty will lead to more pertinent recommendations over future clinical studies.
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spelling doaj-art-755547b1af024b5abfe12e7a2f86ea252025-08-20T02:34:32ZengSAGE PublishingMDM Policy & Practice2381-46832025-05-011010.1177/23814683251340058The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision ModelsDoug CoyleKathryn CoyleEconomic evaluations that incorporate value-of-information analysis frequently conclude that the greatest information value relates to replicating short-term clinical trials. This study builds on recent guidance relating to extrapolation in economic evaluation by assessing the impact of alternative approaches to representing the uncertainty around unobserved/extrapolated data with respect to incremental outcomes and value of information. When the uncertainty over unobserved and observed data is considered distinct but correlated (i.e., has a joint distribution), it is demonstrated that the value to replicating short-term clinical studies is lessened and that further studies relating to the unobserved periods likely provide more value. Highlights Current practice in economic evaluation often involves the inappropriate specification of uncertainty with respect to unobserved data. Appropriate specification of uncertainty will lead to more pertinent recommendations over future clinical studies.https://doi.org/10.1177/23814683251340058
spellingShingle Doug Coyle
Kathryn Coyle
The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models
MDM Policy & Practice
title The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models
title_full The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models
title_fullStr The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models
title_full_unstemmed The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models
title_short The Impact of Alternative Specifications of Uncertainty Relating to Extrapolation in Decision Models
title_sort impact of alternative specifications of uncertainty relating to extrapolation in decision models
url https://doi.org/10.1177/23814683251340058
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