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Productivity and quality-adjusted life years: QALYs, PALYs and beyond

Author

Listed:
  • Hansen, Kristian S.

    (National Research Centre for the Working Environment (NFA))

  • Moreno-Ternero, Juan D.

    (Department of Economics, Universidad Pablo de Olavide)

  • Østerdal, Lars P.

    (Department of Economics, Copenhagen Business School)

Abstract

We develop a general framework for the evaluation of health and productivity of a population of individuals. In such a framework, we characterize Productivity-and-Quality-Adjusted Life Years evaluation functions, which range from the classical Quality-Adjusted Life Years (QALYs) to its polar Productivity-Adjusted Life Years (PALYs). Our frame-work and characterization results provide a new normative basis for the economic evalu-ation of health care or occupational health and safety policies.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:cbsnow:2023_011
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    More about this item

    Keywords

    Health; productivity; QALYs; PALYs; axioms;
    All these keywords.

    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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