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Economic valuation of informal care: Lessons from the application of the opportunity costs and proxy good methods

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  • van den Berg, Bernard
  • Brouwer, Werner
  • van Exel, Job
  • Koopmanschap, Marc
  • van den Bos, Geertrudis A.M.
  • Rutten, Frans

Abstract

This paper reports the results of the application of the opportunity costs and proxy good methods to determine a monetary value of informal care. We developed a survey in which we asked informal caregivers in The Netherlands to indicate the different types of time forgone (paid work, unpaid work and leisure) in order to be able to provide care. Moreover, we asked informal caregivers how much time they spent on a list of 16 informal care tasks during the week before the interview. Data were obtained from surveys in two different populations: informal caregivers and their care recipients with stroke and with rheumatoid arthritis (RA). A total of 218 care recipients with stroke and their primary informal caregivers completed a survey as well as 147 caregivers and their care recipients with RA. The measurement of care according to both methods is more problematic compared to the valuation. This is especially the case for the opportunity costs method and for the housework part in the proxy good method. More precise guidelines are necessary for the consistent application of both methods in order to ensure comparability of results and of economic evaluations of health care.

Suggested Citation

  • van den Berg, Bernard & Brouwer, Werner & van Exel, Job & Koopmanschap, Marc & van den Bos, Geertrudis A.M. & Rutten, Frans, 2006. "Economic valuation of informal care: Lessons from the application of the opportunity costs and proxy good methods," Social Science & Medicine, Elsevier, vol. 62(4), pages 835-845, February.
  • Handle: RePEc:eee:socmed:v:62:y:2006:i:4:p:835-845
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    References listed on IDEAS

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    1. Bernard van den Berg & Han Bleichrodt & Louis Eeckhoudt, 2005. "The economic value of informal care: a study of informal caregivers' and patients' willingness to pay and willingness to accept for informal care," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 363-376.
    2. van den Berg, Bernard & Al, Maiwenn & Brouwer, Werner & van Exel, Job & Koopmanschap, Marc, 2005. "Economic valuation of informal care: The conjoint measurement method applied to informal caregiving," Social Science & Medicine, Elsevier, vol. 61(6), pages 1342-1355, September.
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    5. Norton, Edward C., 2000. "Long-term care," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 17, pages 955-994 Elsevier.
    6. Wimo, Anders & von Strauss, Eva & Nordberg, Gunilla & Sassi, Franco & Johansson, Lennarth, 2002. "Time spent on informal and formal care giving for persons with dementia in Sweden," Health Policy, Elsevier, vol. 61(3), pages 255-268, September.
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    Cited by:

    1. Krol, Marieke & Brouwer, Werner, 2015. "Unpaid work in health economic evaluations," Social Science & Medicine, Elsevier, vol. 144(C), pages 127-137.
    2. Emmanouil Mentzakis & Mandy Ryan & Paul McNamee, 2014. "Modelling Heterogeneity and Uncertainty in Contingent Valuation: an Application to the Valuation of Informal Care," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(1), pages 1-25, February.
    3. Renske Hoefman & Job Exel & Werner Brouwer, 2013. "How to Include Informal Care in Economic Evaluations," PharmacoEconomics, Springer, vol. 31(12), pages 1105-1119, December.
    4. Allison Larg & John Moss, 2011. "Cost-of-Illness Studies," PharmacoEconomics, Springer, vol. 29(8), pages 653-671, August.
    5. Emmanouil Mentzakis & Paul McNamee & Mandy Ryan & Matthew Sutton, 2012. "Valuing Informal Care Experience: Does Choice of Measure Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 169-184, August.
    6. Claudine de Meijer & Werner Brouwer & Marc Koopmanschap & Bernard van den Berg & Job van Exel, 2010. "The value of informal care-a further investigation of the feasibility of contingent valuation in informal caregivers," Health Economics, John Wiley & Sons, Ltd., vol. 19(7), pages 755-771.
    7. Paul Hanly & Alan Céilleachair & Mairead Skally & Eamonn O’Leary & Anthony Staines & Kanika Kapur & Patricia Fitzpatrick & Linda Sharp, 2013. "Time Costs Associated with Informal Care for Colorectal Cancer: An Investigation of the Impact of Alternative Valuation Methods," Applied Health Economics and Health Policy, Springer, vol. 11(3), pages 193-203, June.
    8. Luz Peña-Longobardo & Juan Oliva-Moreno, 2015. "Economic valuation and determinants of informal care to people with Alzheimer’s disease," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(5), pages 507-515, June.
    9. van den Berg, Bernard & Fiebig, Denzil G. & Hall, Jane, 2014. "Well-being losses due to care-giving," Journal of Health Economics, Elsevier, vol. 35(C), pages 123-131.
    10. Juan Oliva-Moreno & Marta Trapero-Bertran & Luz Maria Peña-Longobardo & Raúl del Pozo-Rubio, 2017. "The Valuation of Informal Care in Cost-of-Illness Studies: A Systematic Review," PharmacoEconomics, Springer, vol. 35(3), pages 331-345, March.
    11. Kenneth Tang, 2015. "Estimating Productivity Costs in Health Economic Evaluations: A Review of Instruments and Psychometric Evidence," PharmacoEconomics, Springer, vol. 33(1), pages 31-48, January.
    12. Marieke Krol & Werner Brouwer, 2014. "How to Estimate Productivity Costs in Economic Evaluations," PharmacoEconomics, Springer, vol. 32(4), pages 335-344, April.
    13. Alain Paraponaris & Bérengère Davin & Pierre Verger, 2012. "Formal and informal care for disabled elderly living in the community: an appraisal of French care composition and costs," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(3), pages 327-336, June.
    14. Nagede Costa & Helene Derumeaux & Thomas Rapp & Valérie Garnault & Laura Ferlicoq & Sophie Gillette & Sandrine Andrieu & Bruno Vellas & Michel Lamure & Alain Grand & Laurent Molinier, 2012. "Methodological considerations in cost of illness studies on Alzheimer disease," Health Economics Review, Springer, vol. 2(1), pages 1-12, December.
    15. Rapp, Thomas & Grand, Alain & Cantet, Christelle & Andrieu, Sandrine & Coley, Nicola & Portet, Florence & Vellas, Bruno, 2011. "Public financial support receipt and non-medical resource utilization in Alzheimer's disease results from the PLASA study," Social Science & Medicine, Elsevier, vol. 72(8), pages 1310-1316, April.
    16. James Shearer & Paul McCrone & Renee Romeo, 2016. "Economic Evaluation of Mental Health Interventions: A Guide to Costing Approaches," PharmacoEconomics, Springer, vol. 34(7), pages 651-664, July.
    17. Juan Oliva-Moreno & Luz Peña-Longobardo & Cristina Vilaplana-Prieto, 2015. "An Estimation of the Value of Informal Care Provided to Dependent People in Spain," Applied Health Economics and Health Policy, Springer, vol. 13(2), pages 223-231, April.
    18. Hassink, Wolter H.J. & Van den Berg, Bernard, 2011. "Time-bound opportunity costs of informal care: Consequences for access to professional care, caregiver support, and labour supply estimates," Social Science & Medicine, Elsevier, vol. 73(10), pages 1508-1516.
    19. Riewpaiboon, Arthorn & Riewpaiboon, Wachara & Ponsoongnern, Kanyarat & Van den Berg, Bernard, 2009. "Economic valuation of informal care in Asia: A case study of care for disabled stroke survivors in Thailand," Social Science & Medicine, Elsevier, vol. 69(4), pages 648-653, August.
    20. Dumont, Serge & Jacobs, Philip & Turcotte, Véronique & Anderson, Donna & Harel, François, 2010. "Measurement challenges of informal caregiving: A novel measurement method applied to a cohort of palliative care patients," Social Science & Medicine, Elsevier, vol. 71(10), pages 1890-1895, November.
    21. Jane Hall & Patricia Kenny & Ishrat Hossain, 2007. "The provision of informal care in terminal illness: An analysis of carers? needs using a discrete choice experiment," Working Papers 2007/12, CHERE, University of Technology, Sydney.

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