IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Years of good life based on income and health: Re-engineering cost-benefit analysis to examine policy impacts on wellbeing and distributive justice

Listed author(s):
  • Richard Cookson

    (Centre for Health Economics, University of York, York, UK)

  • Owen Cotton-Barrett

    (University of Oxford, Oxford, UK)

  • Matthew Adler

    (Duke University, North Carolina, USA)

  • Miqdad Asaria

    (Centre for Health Economics, University of York, York, UK)

  • Toby Ord

    (Duke University, North Carolina, USA)

Registered author(s):

    In this paper, we propose a practical measure of individual wellbeing to facilitate the economic evaluation of public policies. We propose to evaluate policies in terms of years of good life gained, in a way that complements and generalises conventional cost-benefit analysis in terms of money. We aim to show how years of good life could be measured in practice by harnessing readily available data on three important elements of individual wellbeing: income, health-related quality of life, and longevity. We also aim to identify the main ethical assumptions needed to use this measure.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.york.ac.uk/media/che/documents/papers/researchpapers/CHERP132_income_health_CBA_wellbeing_justice.pdf
    File Function: First version, 2016
    Download Restriction: no

    Paper provided by Centre for Health Economics, University of York in its series Working Papers with number 132cherp.

    as
    in new window

    Length: 25 pages
    Date of creation: Jul 2016
    Handle: RePEc:chy:respap:132cherp
    Contact details of provider: Postal:
    York Y010 5DD

    Phone: (01904) 321401
    Web page: http://www.york.ac.uk/che
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Brazier, John & Ratcliffe, Julie & Salomon, Joshua & Tsuchiya, Aki, 2016. "Measuring and Valuing Health Benefits for Economic Evaluation," OUP Catalogue, Oxford University Press, edition 2, number 9780198725923.
    2. Marc Fleurbaey & Erik Schokkaert, 2013. "Behavioral Welfare Economics and Redistribution," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 180-205, August.
    3. Anthony B. Atkinson, 2011. "The Restoration of Welfare Economics," American Economic Review, American Economic Association, vol. 101(3), pages 157-161, May.
    4. Richard Layard & Andrew E. Clark & Francesca Cornaglia & Nattavudh Powdthavee & James Vernoit, 2014. "What Predicts a Successful Life? A Life‐course Model of Well‐being," Economic Journal, Royal Economic Society, vol. 124(580), pages 720-738, November.
    5. Tengstam, Sven, 2007. "Disability and Marginal Utility of Income," Working Papers in Economics 276, University of Gothenburg, Department of Economics, revised 20 Jan 2012.
    6. James Hammitt, 2013. "Admissible utility functions for health, longevity, and wealth: integrating monetary and life-year measures," Journal of Risk and Uncertainty, Springer, vol. 47(3), pages 311-325, December.
    7. Robert Sugden, 2008. "Why incoherent preferences do not justify paternalism," Constitutional Political Economy, Springer, vol. 19(3), pages 226-248, September.
    8. A. B. Atkinson, 2009. "Economics as a Moral Science," Economica, London School of Economics and Political Science, vol. 76(s1), pages 791-804, October.
    9. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
    10. Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-374, June.
    11. James E. Smith & Ralph L. Keeney, 2005. "Your Money or Your Life: A Prescriptive Model for Health, Safety, and Consumption Decisions," Management Science, INFORMS, vol. 51(9), pages 1309-1325, September.
    12. Bleichrodt, Han & Quiggin, John, 1999. "Life-cycle preferences over consumption and health: when is cost-effectiveness analysis equivalent to cost-benefit analysis?," Journal of Health Economics, Elsevier, vol. 18(6), pages 681-708, December.
    13. Wolfson, Michael, 1995. "Socio-economic Statistics and Public Policy: A New Role for Microsimulation Modeling," Analytical Studies Branch Research Paper Series 1995081e, Statistics Canada, Analytical Studies Branch.
    14. Sen, Amaryta, 1999. "On Ethics and Economics," OUP Catalogue, Oxford University Press, number 9780195627619.
    15. Evans, William N & Viscusi, W Kip, 1991. "Estimation of State-Dependent Utility Functions Using Survey Data," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 94-104, February.
    16. Williams, Alan, 1972. "Cost-benefit analysis: Bastard science? and/or insidious poison in the body politick?," Journal of Public Economics, Elsevier, vol. 1(2), pages 199-225, August.
    17. Layard, R. & Mayraz, G. & Nickell, S., 2008. "The marginal utility of income," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1846-1857, August.
    18. Sven Tengstam, 2014. "Disability And Marginal Utility Of Income: Evidence From Hypothetical Choices," Health Economics, John Wiley & Sons, Ltd., vol. 23(3), pages 268-282, 03.
    19. Richard Cookson, 2005. "QALYs and the capability approach," Health Economics, John Wiley & Sons, Ltd., vol. 14(8), pages 817-829.
    20. Broome, John, 2006. "Weighing Lives," OUP Catalogue, Oxford University Press, number 9780199297702.
    21. Pauly, Mark V., 1996. "Reply to Anthony J. Culyer and Robert G. Evans," Journal of Health Economics, Elsevier, vol. 15(2), pages 253-254, April.
    22. Charles Blackorby & David Donaldson, 1990. "A Review Article: The Case against the Use of the Sum of Compensating Variations in Cost-Benefit Analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 471-494, August.
    23. Rafael Di Tella & Robert MacCulloch, 2006. "Some Uses of Happiness Data in Economics," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 25-46, Winter.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:chy:respap:132cherp. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frances Sharp)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.