IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v148y2020i3d10.1007_s11205-019-02221-w.html
   My bibliography  Save this article

Application of Social Choice Theory to Modify the Value Measure of Health Systems

Author

Listed:
  • Yelin Fu

    (Shenzhen University
    The University of Hong Kong)

  • Yubing Sui

    (Shenzhen University)

  • Hao Luo

    (Shenzhen University)

  • Biao Han

    (Shenzhen University)

Abstract

As a new composite indicator for capturing the value delivered by health systems of developing and developed economies, the Value Measure is the arithmetic average of access, satisfaction and efficiency, which are all made up of various components and scaled from 0 to 100. In light of the possibility of compensation associated with the arithmetic average, this paper proposes a new methodology to modify the Value Measure in a social choice framework. Specifically, we first take into account all possible individual preferences among access, satisfaction and efficiency; then calculate the pessimistic (worst case) and optimistic (best case) results, which are balanced by a “coefficient of optimism”; the CRITIC method is lastly employed to determine a set of common weights associated with individual preferences, for modifying the Value Measure released by Royal Philips. The superiority of proposed methodology is verified by means of computing and comparing Spearman’s rank correlation coefficients. The validity of our methodology is demonstrated using the data drawn from Future Health Index 2018.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:soinre:v:148:y:2020:i:3:d:10.1007_s11205-019-02221-w
    DOI: 10.1007/s11205-019-02221-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-019-02221-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-019-02221-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Dolan & Daniel Kahneman, 2008. "Interpretations Of Utility And Their Implications For The Valuation Of Health," Economic Journal, Royal Economic Society, vol. 118(525), pages 215-234, January.
    2. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Comparing aggregating methods for constructing the composite environmental index: An objective measure," Ecological Economics, Elsevier, vol. 59(3), pages 305-311, September.
    3. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2013. "A new axiomatic approach to the evaluation of population health," Journal of Health Economics, Elsevier, vol. 32(3), pages 515-523.
    4. George W. Torrance & Michael H. Boyle & Sargent P. Horwood, 1982. "Application of Multi-Attribute Utility Theory to Measure Social Preferences for Health States," Operations Research, INFORMS, vol. 30(6), pages 1043-1069, December.
    5. Schang, Laura & Hynninen, Yrjänä & Morton, Alec & Salo, Ahti, 2016. "Developing robust composite measures of healthcare quality – Ranking intervals and dominance relations for Scottish Health Boards," Social Science & Medicine, Elsevier, vol. 162(C), pages 59-67.
    6. Samuel Lyerly, 1952. "The average spearman rank correlation coefficient," Psychometrika, Springer;The Psychometric Society, vol. 17(4), pages 421-428, December.
    7. Charles M. Harvey & Lars Peter Østerdal, 2010. "Cardinal Scales for Health Evaluation," Decision Analysis, INFORMS, vol. 7(3), pages 256-281, September.
    8. Risto Lahdelma & Pekka Salminen, 2001. "SMAA-2: Stochastic Multicriteria Acceptability Analysis for Group Decision Making," Operations Research, INFORMS, vol. 49(3), pages 444-454, June.
    9. Y M Wang & K S Chin & J B Yang, 2007. "Measuring the performances of decision-making units using geometric average efficiency," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(7), pages 929-937, July.
    10. Amartya Sen, 1999. "The Possibility of Social Choice," American Economic Review, American Economic Association, vol. 89(3), pages 349-378, June.
    11. James S. Dyer & Rakesh K. Sarin, 1979. "Group Preference Aggregation Rules Based on Strength of Preference," Management Science, INFORMS, vol. 25(9), pages 822-832, September.
    12. Barry Dewitt & Alexander Davis & Baruch Fischhoff & Janel Hanmer, 2017. "An Approach to Reconciling Competing Ethical Principles in Aggregating Heterogeneous Health Preferences," Medical Decision Making, , vol. 37(6), pages 647-656, August.
    13. Van Puyenbroeck, Tom & Rogge, Nicky, 2017. "Geometric mean quantity index numbers with Benefit-of-the-Doubt weights," European Journal of Operational Research, Elsevier, vol. 256(3), pages 1004-1014.
    14. Handler, A. & Issel, M. & Turnock, B., 2001. "A conceptual framework to measure performance of the public health system," American Journal of Public Health, American Public Health Association, vol. 91(8), pages 1235-1239.
    15. Nils Gutacker & Andrew Street, 2015. "Multidimensional performance assessment using dominance criteria," Working Papers 115cherp, Centre for Health Economics, University of York.
    16. Kruk, Margaret Elizabeth & Freedman, Lynn P., 2008. "Assessing health system performance in developing countries: A review of the literature," Health Policy, Elsevier, vol. 85(3), pages 263-276, March.
    17. Sen, Amartya K, 1977. "Social Choice Theory: A Re-examination," Econometrica, Econometric Society, vol. 45(1), pages 53-89, January.
    18. James S. Dyer & Ralph F. Miles, 1976. "An Actual Application of Collective Choice Theory to the Selection of Trajectories for the Mariner Jupiter/Saturn 1977 Project," Operations Research, INFORMS, vol. 24(2), pages 220-244, April.
    19. Tigran Melkonyan & Zvi Safra, 2016. "Intrinsic Variability in Group and Individual Decision Making," Management Science, INFORMS, vol. 62(9), pages 2651-2667, September.
    20. F. Hutton Barron & Bruce E. Barrett, 1996. "Decision Quality Using Ranked Attribute Weights," Management Science, INFORMS, vol. 42(11), pages 1515-1523, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seyed Mohsen Mirbagheri & Ata Ollah Rafiei Atani & Mohammadreza Parsanejad, 2023. "The Effect of Collective Decision-Making on Productivity: A Structural Equation Modeling," SAGE Open, , vol. 13(4), pages 21582440231, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yelin Fu & Kong Xiangtianrui & Hao Luo & Lean Yu, 2020. "Constructing Composite Indicators with Collective Choice and Interval-Valued TOPSIS: The Case of Value Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 117-135, November.
    2. Fu, Yelin & Lai, Kin Keung & Yu, Lean, 2021. "Multi-nation comparisons of energy architecture performance: A group decision-making method with preference structure and acceptability analysis," Energy Economics, Elsevier, vol. 96(C).
    3. Fan Liu & Ning Ma, 2019. "Multicriteria ABC Inventory Classification Using the Social Choice Theory," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    4. Yang Ding & Yelin Fu & Kin Keung Lai & W. K. John Leung, 2018. "Using Ranked Weights and Acceptability Analysis to Construct Composite Indicators: A Case Study of Regional Sustainable Society Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 871-885, October.
    5. 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).
    6. 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.
    7. Tianjiao Wang & Yelin Fu, 2020. "Constructing Composite Indicators with Individual Judgements and Best–Worst Method: An Illustration of Value Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 1-14, May.
    8. Charles M. Harvey & Lars Peter Østerdal, 2010. "Cardinal Scales for Health Evaluation," Decision Analysis, INFORMS, vol. 7(3), pages 256-281, September.
    9. Chen, Sihua & Du, Jiangze & He, Wei & Siponen, Mikko, 2022. "Supply chain finance platform evaluation based on acceptability analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    10. Song, Lianlian & Fu, Yelin & Zhou, Peng & Lai, Kin Keung, 2017. "Measuring national energy performance via Energy Trilemma Index: A Stochastic Multicriteria Acceptability Analysis," Energy Economics, Elsevier, vol. 66(C), pages 313-319.
    11. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2018. "σ-µ efficiency analysis: A new methodology for evaluating units through composite indices," MPRA Paper 83569, University Library of Munich, Germany.
    12. Mateos, A. & Jimenez, A. & Rios-Insua, S., 2006. "Monte Carlo simulation techniques for group decision making with incomplete information," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1842-1864, November.
    13. Podinovski, Vladislav V., 2020. "Maximum likelihood solutions for multicriterial choice problems," European Journal of Operational Research, Elsevier, vol. 286(1), pages 299-308.
    14. Marcus Pivato, 2015. "Social choice with approximate interpersonal comparison of welfare gains," Theory and Decision, Springer, vol. 79(2), pages 181-216, September.
    15. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    16. Franciely Velozo Aragão & Daiane Maria de Genaro Chiroli & Fernanda Cavicchioli Zola & Emanuely Velozo Aragão & Luis Henrique Nogueira Marinho & Ana Lidia Cascales Correa & João Carlos Colmenero, 2023. "Smart Cities Maturity Model—A Multicriteria Approach," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    17. Yang, Feng & Ang, Sheng & Xia, Qiong & Yang, Chenchen, 2012. "Ranking DMUs by using interval DEA cross efficiency matrix with acceptability analysis," European Journal of Operational Research, Elsevier, vol. 223(2), pages 483-488.
    18. Ralph L. Keeney, 2013. "Foundations for Group Decision Analysis," Decision Analysis, INFORMS, vol. 10(2), pages 103-120, June.
    19. Zhiying Zhang & Huchang Liao, 2024. "A stochastic cross-efficiency DEA approach based on the prospect theory and its application in winner determination in public procurement tenders," Annals of Operations Research, Springer, vol. 341(1), pages 509-537, October.
    20. Jiménez, Antonio & Mateos, Alfonso & Sabio, Pilar, 2013. "Dominance intensity measure within fuzzy weight oriented MAUT: An application," Omega, Elsevier, vol. 41(2), pages 397-405.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:148:y:2020:i:3:d:10.1007_s11205-019-02221-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.