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Productivity cost calculations in health economic evaluations: Correcting for compensation mechanisms and multiplier effects

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  • Krol, Marieke
  • Brouwer, Werner B.F.
  • Severens, Johan L.
  • Kaper, Janneke
  • Evers, Silvia M.A.A.

Abstract

Productivity costs related to paid work are commonly calculated in economic evaluations of health technologies by multiplying the relevant number of work days lost with a wage rate estimate. It has been argued that actual productivity costs may either be lower or higher than current estimates due to compensation mechanisms and/or multiplier effects (related to team dependency and problems with finding good substitutes in cases of absenteeism). Empirical evidence on such mechanisms and their impact on productivity costs is scarce, however.

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  • Krol, Marieke & Brouwer, Werner B.F. & Severens, Johan L. & Kaper, Janneke & Evers, Silvia M.A.A., 2012. "Productivity cost calculations in health economic evaluations: Correcting for compensation mechanisms and multiplier effects," Social Science & Medicine, Elsevier, vol. 75(11), pages 1981-1988.
    • Handle: RePEc:eee:socmed:v:75:y:2012:i:11:p:1981-1988
    DOI: 10.1016/j.socscimed.2012.07.012
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    References listed on IDEAS

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    2. Michal Jakubczyk & Beata Kon, 2016. "The impact of firms' expectations & adjustments on the productivity cost of illness," KAE Working Papers 2016-008, Warsaw School of Economics, Collegium of Economic Analysis.
    3. Johan A. Liseth Hansen & Thomas Fast & Knut Reidar Wangen, 2023. "Productivity Loss Across Socioeconomic Groups Among Patients With Low Back Pain or Osteoarthritis: Estimates Using the Friction-Cost Approach in Norway," PharmacoEconomics, Springer, vol. 41(9), pages 1079-1091, September.
    4. Paul Hanly & Rebecca Maguire & Frances Drummond & Linda Sharp, 2019. "Variation in the methodological approach to productivity cost valuation: the case of prostate cancer," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(9), pages 1399-1408, December.
    5. Werner Brouwer & Kaya Verbooy & Renske Hoefman & Job Exel, 2023. "Production Losses due to Absenteeism and Presenteeism: The Influence of Compensation Mechanisms and Multiplier Effects," PharmacoEconomics, Springer, vol. 41(9), pages 1103-1115, September.
    6. Jesse Kigozi & Sue Jowett & Martyn Lewis & Pelham Barton & Joanna Coast, 2016. "Estimating productivity costs using the friction cost approach in practice: a systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 31-44, January.
    7. Marieke Krol & Nikkie Hosseinnia & Werner Brouwer & Leona Hakkaart Roijen, 2023. "Multiplier Effects and Compensation Mechanisms for Inclusion in Health Economic Evaluation: A Systematic Review," PharmacoEconomics, Springer, vol. 41(9), pages 1031-1050, September.
    8. Michał Jakubczyk & Beata Koń, 2017. "The impact of firms’ adjustments on the indirect cost of illness," International Journal of Health Economics and Management, Springer, vol. 17(3), pages 377-394, September.
    9. Coast, Joanna, 2018. "A history that goes hand in hand: Reflections on the development of health economics and the role played by Social Science & Medicine, 1967–2017," Social Science & Medicine, Elsevier, vol. 196(C), pages 227-232.
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    12. Hanly, Paul & Ortega Ortega, Marta & Pearce, Alison & Soerjomataram, Isabelle & Sharp, Linda, 2020. "Advances in the methodological approach to friction period estimation: A European perspective," Social Science & Medicine, Elsevier, vol. 264(C).

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