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A new axiomatic approach to the evaluation of population health

Author

Listed:
  • Jens Leth Hougaard

    (Institute of Food and Resource Economics, University of Copenhagen)

  • Juan D. Moreno-Ternero

    (Department of Economics, Universidad Pablo de Olavide, and CORE, Université catholique de Louvain)

  • Lars Peter Østerdal

    (Department of Economics, University of Copenhagen.)

Abstract

We explore in this paper the implications of ethical and operational principles for the evaluation of population health. We formalize those principles as axioms for social preferences over distributions of health for a given population. We single out several focal population health evaluation functions, which represent social preferences, as a result of combinations of those axioms. Our results provide rationale for popular theories in health economics (such as the unweighted aggregation of QALYs or HYEs, and generalizations of the two, aimed to capture concerns for distributive justice) without resorting to controversial assumptions over individual preferences.

Suggested Citation

  • Jens Leth Hougaard & Juan D. Moreno-Ternero & Lars Peter Østerdal, 2011. "A new axiomatic approach to the evaluation of population health," Discussion Papers 11-24, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:1124
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    References listed on IDEAS

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    2. 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.
    3. Ricardo Martínez & Juan D Moreno Ternero, 2021. "Pandemic performance," ThE Papers 21/09, Department of Economic Theory and Economic History of the University of Granada..
    4. Yelin Fu & Yubing Sui & Hao Luo & Biao Han, 2020. "Application of Social Choice Theory to Modify the Value Measure of Health Systems," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(3), pages 1005-1019, April.
    5. Adler, Matthew D. & Ferranna, Maddalena & Hammitt, James K. & Treich, Nicolas, 2021. "Fair innings? The utilitarian and prioritarian value of risk reduction over a whole lifetime," Journal of Health Economics, Elsevier, vol. 75(C).
    6. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "An axiomatic approach towards pandemic performance indicators," Economic Modelling, Elsevier, vol. 116(C).
    7. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    8. Aitor Calo-Blanco, 2015. "Health, responsibility and taxation with a fresh start," Working Papers 15.06, Universidad Pablo de Olavide, Department of Economics.
    9. Aitor Calo-Blanco, 2020. "Health and fairness with other-regarding preferences," Review of Economic Design, Springer;Society for Economic Design, vol. 24(3), pages 123-141, December.
    10. MORENO-TERNERO, Juan & OSTERDAL, Lars P., 2014. "Normative foundations for equity-sensitive population health evaluation functions," LIDAM Discussion Papers CORE 2014031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Aitor Calo-Blanco, 2014. "Fairness, freedom, and forgiveness in health care," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 141-151, June.
    12. Moreno-Ternero, Juan D. & Platz, Trine Tornøe & Østerdal, Lars Peter, 2023. "QALYs, DALYs, and HALYs: A unifying framework for the evaluation of population health," Journal of Health Economics, Elsevier, vol. 87(C).
    13. Hansen, Kristian S. & Moreno-Ternero, Juan D. & Østerdal, Lars P., 2024. "Quality- and productivity-adjusted life years: From QALYs to PALYs and beyond," Journal of Health Economics, Elsevier, vol. 95(C).
    14. Jens Leth Hougaard & Juan D. Moreno-Ternero & Lars Peter Østerdal, 2013. "On the Measurement of the (Multidimensional) Inequality of Health Distributions," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 111-129, Emerald Group Publishing Limited.
    15. Juan D. Moreno-Ternero & Lars Peter Østerdal, 2017. "A normative foundation for equity-sensitive health evaluation: The role of relative comparisons of health gains," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(5), pages 1009-1025, October.
    16. Juan D. Moreno-Ternero & Lars Peter Østerdal, 2023. "Entitlements to continued life and the evaluation of population health," Review of Economic Design, Springer;Society for Economic Design, vol. 27(3), pages 561-579, September.
    17. Da Costa, Shaun & O’Donnell, Owen & Van Gestel, Raf, 2024. "Distributionally sensitive measurement and valuation of population health," Journal of Health Economics, Elsevier, vol. 93(C).
    18. Moreno-Terneroy , Juan D & Østerdal, Lars Peter, 2015. "The implications of equal value of life and prioritarianism for the evaluation of population health," DaCHE discussion papers 2015:1, University of Southern Denmark, Dache - Danish Centre for Health Economics.
    19. Cho, Wonki Jo & Moreno-Ternero, Juan D., 2024. "On reaching social consent," Journal of Mathematical Economics, Elsevier, vol. 110(C).
    20. Shaun Da Costa & Owen O'Donnell & Raf Van Gestel, 2023. "Distributionally Sensitive Measurement and Valuation of Population Health," Tinbergen Institute Discussion Papers 23-017/V, Tinbergen Institute.

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    More about this item

    Keywords

    population health; QALYs; HYEs; 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

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