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Measuring the societal value of lifetime health

Author

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  • Aki Tsuchiya

    () (Department of Economics, The University of Sheffield Author-Person=pts38)

  • Richard Edlin
  • Paul Dolan

Abstract

This paper considers two societal concerns in addition to health maximisation: first, concerns for the societal value of lifetime health for an individual; and second, concerns for the value of lifetime health across individuals. Health-related social welfare functions (HRSWFs) have addressed only the second concern. We propose a model that expresses the former in a metric – the adult healthy-year equivalent (AHYE) – that can be incorporated into standard HRSWFs. An empirical study based on this formulation shows that both factors matter: health losses in childhood are weighted more heavily than losses in adulthood and respondents wish to reduce inequalities in AHYEs.

Suggested Citation

  • Aki Tsuchiya & Richard Edlin & Paul Dolan, 2009. "Measuring the societal value of lifetime health," Working Papers 2009010, The University of Sheffield, Department of Economics, revised May 2009.
  • Handle: RePEc:shf:wpaper:2009010
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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2009_010.html
    File Function: First version, 2009
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    References listed on IDEAS

    as
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    Cited by:

    1. Aki Tsuchiya, 2012. "Distributional Judgements in the Context of Economic Evaluation," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 38 Edward Elgar Publishing.
    2. Round, Jeff, 2012. "Is a QALY still a QALY at the end of life?," Journal of Health Economics, Elsevier, vol. 31(3), pages 521-527.

    More about this item

    Keywords

    Health; Social welfare function; monotonicity; Equity;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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