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Integrating Equity and Productivity in Health Evaluation

Author

Listed:
  • Hansen, Kristian S.

    (National Research Centre for the Working Environment (NFA), Copenhagen, Denmark)

  • Moreno-Ternero, Juan D.

    (Department of Economics, Universidad Pablo de Olavide)

  • Østerdal, Lars Peter

    (Department of Economics, Copenhagen Business School)

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 class of evaluation functions that integrate fairness- and productivity-sensitive principles. By imposing normative principles, includ-ing independence from measurement scales and Pigou-Dalton transfer properties, we ob-tain tractable power-form representations. In balancing distributive justice and efficiency, the framework provides a coherent foundation for assessing health interventions in con-texts where both equity and productive capacity are at stake.

Suggested Citation

  • Hansen, Kristian S. & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2025. "Integrating Equity and Productivity in Health Evaluation," Working Papers 9-2025, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2025_009
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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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