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Integrating equity and productivity in health evaluation

Author

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

Abstract

This paper develops a unified framework for evaluating health outcomes that jointly incorporates equity and productivity. Extending beyond traditional QALYs, PALYs, and the more recent PQALYs, we introduce a broader class of evaluation functions that integrate equity- and productivity-sensitive conditions. By imposing several normative criteria, including independence from measurement scales and Pigou-Dalton transfer principles, we obtain tractable power-form representations. In balancing equity and efficiency, the framework provides a coherent foundation for assessing interventions in contexts where both health and productive capacity are at stake.

Suggested Citation

  • Kristian S. Hansen & Juan D. Moreno-Ternero & Lars P. {O}sterdal, 2026. "Integrating equity and productivity in health evaluation," Papers 2605.01763, arXiv.org.
  • Handle: RePEc:arx:papers:2605.01763
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    References listed on IDEAS

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    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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