Parameters:
(1) base price in dollars ($11,000)
(2) Gini coefficient for the country
(3) country specific per capita GDP
(4) survival benefit in months
price to use in the county =
= ((base cost in dollars) + (300 * (Gini)) - (per capita GDP) - (6000 * (months of survival benefit))) * (-0.05)
This can be rewritten as
price to use in the county =
= (0.05 * (GDP)) + (300 * (months survival benefit)) - (15 * (Gini)) - (0.05 * (base cost))
This version can be revised to the coefficients in Table 3:
price to use in the county =
= (0.051 * (GDP)) + (296 * (months survival benefit)) - (15.1 * (Gini)) - 542
where:
• 542 is 0.05 times 11000
Limitations:
• This is based on the concept of "ability to pay".
