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Productivity and quality-adjusted life years: QALYs, PALYs and beyond

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  • Kristian S. Hansen
  • Juan D. Moreno-Ternero
  • Lars P. {O}sterdal

Abstract

We develop a unified framework for the measurement and valuation of health and productivity. Within this framework, we characterize evaluation functions allowing for compromises between the classical quality-adjusted life years (QALYs) and its polar productivity-adjusted life years (PALYs). Our framework and characterization results provide a new normative basis for the economic evaluation of health care interventions, as well as occupational health and safety policies, aimed to impact both health and productivity of individuals.

Suggested Citation

  • Kristian S. Hansen & Juan D. Moreno-Ternero & Lars P. {O}sterdal, 2024. "Productivity and quality-adjusted life years: QALYs, PALYs and beyond," Papers 2404.04121, arXiv.org.
    • Handle: RePEc:arx:papers:2404.04121
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I10 - Health, Education, and Welfare - - Health - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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