On the welfare theoretic foundation of CEA: comment.

This is a comment on a recent paper by Bengt Liljas (Eur J Health Econ 11:5-13, 2010) in this Journal. The author's analysis is flawed because he fails to take the envelope theorem into account. As a bottom line, we conclude that from a welfare theoretic point of view, future consumption and future labor hours should not be considered in a valid CEA.