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QALY Maximization and the Social Optimum

Author

Listed:
  • Guillem López-Casasnovas

    (Universitat Pompeu Fabra)

  • José Luis Pinto Prades

    (Universidad de Navarra)

Abstract

The quality-adjusted life year (QALY) approach as a paradigmatic measure of health outcomes is widely used in the economic evaluation of health policies and is even trying to be emulated in other public policy areas. The objective of this paper is to structure the arguments underlying the use of QALYs in cost-effectiveness analyses, which condition its applicability. To this effect, the paper intervenes in the unreasonable use of the approach in terms of its limitations when prioritizing health services. In short, the authors are generally in favor of the instrument but do not have blanket enthusiasm in support of it.

Suggested Citation

  • Guillem López-Casasnovas & José Luis Pinto Prades, 2022. "QALY Maximization and the Social Optimum," Hacienda Pública Española / Review of Public Economics, IEF, vol. 242(3), pages 111-127, September.
    • Handle: RePEc:hpe:journl:y:2022:v:242:i:3:p:111-127
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    References listed on IDEAS

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    More about this item

    Keywords

    QALY; Cost effectiveness; Thresholds; Economic evaluation; Pharmaeconomics.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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