Optimal test allocation

Jeffrey Ely; Andrea Galeotti; Ole Jann; Jakub Steiner

doi:10.1016/j.jet.2021.105236

Optimal test allocation

Jeffrey Ely, Andrea Galeotti, Ole Jann, Jakub Steiner^*

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

16 Scopus citations

Abstract

A health authority chooses a binary action for each of several individuals that differ in their pretest probabilities of being infectious and in the additive losses associated with two types of decision errors. The authority is endowed with a portfolio of tests that differ in their sensitivities and specificities. We derive a simple necessary condition for optimality of test allocation. In special cases, precision parameters of the allocated test are monotone in the individuals' types. We characterize the marginal benefit of a test, provide an algorithmic solution for the test-allocation problem and consider the benefits of confirmatory testing.

Original language	English (US)
Article number	105236
Journal	Journal of Economic Theory
Volume	193
DOIs	https://doi.org/10.1016/j.jet.2021.105236
State	Published - Apr 2021

Keywords

Epidemy control
Test allocation
Test sensitivity and specificity

ASJC Scopus subject areas

Economics and Econometrics

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10.1016/j.jet.2021.105236

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AU - Jann, Ole

AU - Steiner, Jakub

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AB - A health authority chooses a binary action for each of several individuals that differ in their pretest probabilities of being infectious and in the additive losses associated with two types of decision errors. The authority is endowed with a portfolio of tests that differ in their sensitivities and specificities. We derive a simple necessary condition for optimality of test allocation. In special cases, precision parameters of the allocated test are monotone in the individuals' types. We characterize the marginal benefit of a test, provide an algorithmic solution for the test-allocation problem and consider the benefits of confirmatory testing.

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KW - Test allocation

KW - Test sensitivity and specificity

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Optimal test allocation

Abstract

Keywords

ASJC Scopus subject areas

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