IDEAS home Printed from https://ideas.repec.org/a/spr/pharme/v32y2014i4p335-344.html
   My bibliography  Save this article

How to Estimate Productivity Costs in Economic Evaluations

Author

Listed:
  • Marieke Krol
  • Werner Brouwer

Abstract

Productivity costs are frequently omitted from economic evaluations, despite their often strong impact on cost-effectiveness outcomes. This neglect may be partly explained by the lack of standardization regarding the methodology of estimating productivity costs. This paper aims to contribute to standardization of productivity cost methodology by offering practical guidance on how to estimate productivity costs in economic evaluations. The paper discusses the identification, measurement and valuation of productivity losses. It is recommended to include not only productivity losses related to absenteeism from and reduced productivity at paid work, but also those related to unpaid work. Hence, it is recommended to use a measurement instrument including questions about both paid and unpaid productivity, such as the iMTA Productivity Cost Questionnaire (iPCQ) or the Valuation of Lost Productivity (VOLP). We indicate how to apply the friction cost and the human capital approach and give practical guidance on deriving final cost estimates. Copyright Springer International Publishing Switzerland 2014

Suggested Citation

  • Marieke Krol & Werner Brouwer, 2014. "How to Estimate Productivity Costs in Economic Evaluations," PharmacoEconomics, Springer, vol. 32(4), pages 335-344, April.
    • Handle: RePEc:spr:pharme:v:32:y:2014:i:4:p:335-344
    DOI: 10.1007/s40273-014-0132-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s40273-014-0132-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s40273-014-0132-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Clive Pritchard;Martin Sculpher, 2000. "Productivity Costs: Principles and Practice in Economic Evaluation," Monograph 000464, Office of Health Economics.
    2. Marieke Krol & Jocé Papenburg & Marc Koopmanschap & Werner Brouwer, 2011. "Do Productivity Costs Matter?," PharmacoEconomics, Springer, vol. 29(7), pages 601-619, July.
    3. 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.
    4. Sean Nicholson & Mark V. Pauly & Daniel Polsky & Claire Sharda & Helena Szrek & Marc L. Berger, 2006. "Measuring the effects of work loss on productivity with team production," Health Economics, John Wiley & Sons, Ltd., vol. 15(2), pages 111-123, February.
    5. Marieke Krol & Elly Stolk & Werner Brouwer, 2014. "Predicting productivity based on EQ-5D: an explorative study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(5), pages 465-475, June.
    6. Carl Tilling & Marieke Kro & Aki Tsuchiya & John Brazier & Job Exel & Werner Brouwer, 2012. "Does the EQ-5D Reflect Lost Earnings?," PharmacoEconomics, Springer, vol. 30(1), pages 47-61, January.
    7. Renske Hoefman & Job Exel & Werner Brouwer, 2013. "How to Include Informal Care in Economic Evaluations," PharmacoEconomics, Springer, vol. 31(12), pages 1105-1119, December.
    8. Drummond, Michael F. & Sculpher, Mark J. & Torrance, George W. & O'Brien, Bernie J. & Stoddart, Greg L., 2005. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 3, number 9780198529453.
    9. Johannesson, Magnus & Karlsson, Goran, 1997. "The friction cost method: A comment," Journal of Health Economics, Elsevier, vol. 16(2), pages 249-255, April.
    10. Koopmanschap, Marc A. & Rutten, Frans F. H. & van Ineveld, B. Martin & van Roijen, Leona, 1995. "The friction cost method for measuring indirect costs of disease," Journal of Health Economics, Elsevier, vol. 14(2), pages 171-189, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hansen, Kristian S. & Moreno-Ternero, Juan D. & Østerdal, Lars P., 2023. "Productivity and quality-adjusted life years: QALYs, PALYs and beyond," Working Papers 11-2023, Copenhagen Business School, Department of Economics.
    2. Joseph Kwon & Ruairidh Milne & Clare Rayner & Román Rocha Lawrence & Jordan Mullard & Ghazala Mir & Brendan Delaney & Manoj Sivan & Stavros Petrou, 2024. "Impact of Long COVID on productivity and informal caregiving," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(7), pages 1095-1115, September.
    3. Alfredo Palacios & Andrea Alcaraz & Agustín Casarini & Federico Rodriguez Cairoli & Natalia Espinola & Dario Balan & Lucas Perelli & Federico Augustovski & Ariel Bardach & Andrés Pichon‐Riviere, 2023. "The health, economic and social burden of smoking in Argentina, and the impact of increasing tobacco taxes in a context of illicit trade," Health Economics, John Wiley & Sons, Ltd., vol. 32(11), pages 2655-2672, November.
    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. Ina Rissanen & Leena Ala-Mursula & Iiro Nerg & Marko Korhonen, 2021. "Adjusted productivity costs of stroke by human capital and friction cost methods: a Northern Finland Birth Cohort 1966 study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(4), pages 531-545, June.
    6. Hongying Hao & Stephen Nicholas & Lizheng Xu & Anli Leng & Jingjie Sun & Zhiyan Han, 2022. "Productivity Losses Due to Diabetes in Urban Rural China," IJERPH, MDPI, vol. 19(10), pages 1-11, May.
    7. Jonas Steel & Lode Godderis & Jeroen Luyten, 2018. "Methodological Challenges in the Economic Evaluation of Occupational Health and Safety Programmes," IJERPH, MDPI, vol. 15(11), pages 1-12, November.
    8. Sevilla, J.P. & Stawasz, Andrew & Burnes, Daria & Poulsen, Peter Bo & Sato, Reiko & Bloom, David E., 2019. "Indirect costs of adult pneumococcal disease and productivity-based rate of return to PCV13 vaccination for older adults and elderly diabetics in Denmark," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    9. Andronis, Lazaros & Maredza, Mandy & Petrou, Stavros, 2019. "Measuring, valuing and including forgone childhood education and leisure time costs in economic evaluation: Methods, challenges and the way forward," Social Science & Medicine, Elsevier, vol. 237(C), pages 1-1.
    10. Ilias Goranitis & Leana Bellanca & Amanda J Daley & Adele Thomas & Helen Stokes-Lampard & Andrea K Roalfe & Sue Jowett, 2017. "Aerobic exercise for vasomotor menopausal symptoms: A cost-utility analysis based on the Active Women trial," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-15, September.
    11. Przemysław Holko & Paweł Kawalec & Małgorzata Mossakowska & Andrzej Pilc, 2016. "Health-Related Quality of Life Impairment and Indirect Cost of Crohn’s Disease: A Self-Report Study in Poland," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-21, December.
    12. Rodrigo Luiz Carregaro & Caroline Ribeiro Tottoli & Daniela da Silva Rodrigues & Judith E Bosmans & Everton Nunes da Silva & Maurits van Tulder, 2020. "Low back pain should be considered a health and research priority in Brazil: Lost productivity and healthcare costs between 2012 to 2016," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-15, April.
    13. Kathleen Manipis & Stephen Goodall & Paul Hanly & Rosalie Viney & Alison Pearce, 2021. "Employer survey to estimate the productivity friction period," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(2), pages 255-266, March.
    14. 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.
    15. Kathleen Manipis & Brendan Mulhern & Philip Haywood & Rosalie Viney & Stephen Goodall, 2023. "Estimating the willingness-to-pay to avoid the consequences of foodborne illnesses: a discrete choice experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(5), pages 831-852, July.
    16. Toly Chen & Chungwei Ou & Yu-Cheng Lin, 2019. "A fuzzy polynomial fitting and mathematical programming approach for enhancing the accuracy and precision of productivity forecasting," Computational and Mathematical Organization Theory, Springer, vol. 25(2), pages 85-107, June.
    17. Mennini, Francesco Saverio & Gitto, Lara, 2022. "Approaches to Estimating Indirect Costs in Healthcare: Motivations for Choice," MPRA Paper 112129, University Library of Munich, Germany.
    18. Paul Hanly & Corina Sheerin, 2017. "Valuing Informal Care in Ireland: Beyond the Traditional Production Boundary," The Economic and Social Review, Economic and Social Studies, vol. 48(3), pages 337-364.
    19. 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).
    20. Diego Proaño Falconi & Eduardo Bernabé, 2018. "Determinants of catastrophic healthcare expenditure in Peru," International Journal of Health Economics and Management, Springer, vol. 18(4), pages 425-436, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Krol, Marieke & Brouwer, Werner, 2015. "Unpaid work in health economic evaluations," Social Science & Medicine, Elsevier, vol. 144(C), pages 127-137.
    3. 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).
    4. Zhang, Wei & Bansback, Nick & Anis, Aslam H., 2011. "Measuring and valuing productivity loss due to poor health: A critical review," Social Science & Medicine, Elsevier, vol. 72(2), pages 185-192, January.
    5. Mennini, Francesco Saverio & Gitto, Lara, 2022. "Approaches to Estimating Indirect Costs in Healthcare: Motivations for Choice," MPRA Paper 112129, University Library of Munich, Germany.
    6. Marco Hafner & Erez Yerushalmi & Fredrik L. Andersson & Teodor Burtea, 2023. "Partially different? The importance of general equilibrium in health economic evaluations: An application to nocturia," Health Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 654-674, March.
    7. Jonas Steel & Lode Godderis & Jeroen Luyten, 2018. "Methodological Challenges in the Economic Evaluation of Occupational Health and Safety Programmes," IJERPH, MDPI, vol. 15(11), pages 1-12, November.
    8. Werner Brouwer & Samare Huls & Ayesha Sajjad & Tim Kanters & Leona Hakkaart-van Roijen & Job Exel, 2022. "In Absence of Absenteeism: Some Thoughts on Productivity Costs in Economic Evaluations in a Post-corona Era," PharmacoEconomics, Springer, vol. 40(1), pages 7-11, January.
    9. 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.
    10. Ina Rissanen & Leena Ala-Mursula & Iiro Nerg & Marko Korhonen, 2021. "Adjusted productivity costs of stroke by human capital and friction cost methods: a Northern Finland Birth Cohort 1966 study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(4), pages 531-545, June.
    11. Renske Hoefman & Job Exel & Werner Brouwer, 2013. "How to Include Informal Care in Economic Evaluations," PharmacoEconomics, Springer, vol. 31(12), pages 1105-1119, December.
    12. Oliver Fritz & Peter Mayerhofer & Reinhard Haller & Gerhard Streicher & Florian Bachner & Herwig Ostermann, 2013. "Die regionalwirtschaftlichen Effekte der österreichischen Krankenanstalten," WIFO Studies, WIFO, number 46672, March.
    13. 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.
    14. 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.
    15. Edward Wilson & Erika Sims & Stanley Musgrave & Lee Shepstone & Annie Blyth & Jamie Murdoch & H. Mugford & Elizabeth Juniper & Jon Ayres & Stephanie Wolfe & Daryl Freeman & Richard Gilbert & Ian Harve, 2010. "Cost Effectiveness of Leukotriene Receptor Antagonists versus Inhaled Corticosteroids for Initial Asthma Controller Therapy," PharmacoEconomics, Springer, vol. 28(7), pages 585-595, July.
    16. Simon Wieser & Bruno Horisberger & Sara Schmidhauser & Claudia Eisenring & Urs Brügger & Andreas Ruckstuhl & Jürg Dietrich & Anne Mannion & Achim Elfering & Özgür Tamcan & Urs Müller, 2011. "Cost of low back pain in Switzerland in 2005," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(5), pages 455-467, October.
    17. Anne Tiainen & Clas Rehnberg, 2010. "The Economic Burden of Psychiatric Disorders in Sweden," International Journal of Social Psychiatry, , vol. 56(5), pages 515-526, September.
    18. Hanna Gyllensten & Michael Wiberg & Kristina Alexanderson & Anders Norlund & Emilie Friberg & Jan Hillert & Olivia Ernstsson & Petter Tinghög, 2018. "Costs of illness of multiple sclerosis in Sweden: a population-based register study of people of working age," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(3), pages 435-446, April.
    19. Juan Oliva & Félix Lobo & Julio López-Bastida & Néboa Zozaya & Rosa Romay, 2005. "Indirect costs of cervical and breast cancers in Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(4), pages 309-313, December.
    20. Koopmanschap, Marc A. & Rutten, Frans F. H. & van Ineveld, B. Martin & van Roijen, Leona, 1997. "Reply to Johanneson's and Karlsson's comment," Journal of Health Economics, Elsevier, vol. 16(2), pages 257-259, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:pharme:v:32:y:2014:i:4:p:335-344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.