Production Gains: Should They Count in Health Care Evaluations?
AbstractThe extent to which production gains should be taken into account in economic analyses of health care depends on how the social welfare function is defined. Two welfare criteria are discussed; the utilitarian and the Pareto-criterion. According to the former there is a relevant production gain which is a welfare gain. If welfare gains are defined in terms of potential Pareto-improvements, the inclusion of production gains depends on whether any increase in health care arising from having a person return to work is larger than the amount of health care needed to cure the person, or whether those who get lower priority in terms of reduced health care are compensated through increased consumption of other goods. Copyright 1994 by Scottish Economic Society.
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Bibliographic InfoArticle provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.
Volume (Year): 41 (1994)
Issue (Month): 1 (February)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292
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- Olsen, Jan Abel, 1997. "Theories of justice and their implications for priority setting in health care," Journal of Health Economics, Elsevier, vol. 16(6), pages 625-639, December.
- Calcott, Paul, 2000. "Health care evaluation, utilitarianism and distortionary taxes," Journal of Health Economics, Elsevier, vol. 19(5), pages 719-730, September.
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