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A new axiomatic approach to the evaluation of population health

Author

Listed:
  • Jens L. Hougaard

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

  • Juan D. Moreno-Ternero

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

  • Lars P. Osterdal

    (Department of Business and Economics, University of Southern Denmark)

Abstract

In this paper we explore the implications of normative 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 new rationale for popular theories in health economics, such as the unweighted aggregation of quality-adjusted life years (QALYs) or healthy years equivalents (HYEs) and generalizations of the two, aimed to capture concerns for distributive justice, without resorting to controversial assumptions on individual preferences.

Suggested Citation

  • Jens L. Hougaard & Juan D. Moreno-Ternero & Lars P. Osterdal, 2012. "A new axiomatic approach to the evaluation of population health," Working Papers 12.08, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:12.08
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    Cited by:

    1. 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.
    2. 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.
    3. Alcalde-Unzu, Jorge & Moreno-Ternero, Juan D. & Weber, Shlomo, 2022. "The measurement of the value of a language," Journal of Economic Theory, Elsevier, vol. 203(C).
    4. 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).
    5. 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).
    6. 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).
    7. 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.
    8. Cho, Wonki Jo & Moreno-Ternero, Juan D., 2024. "On reaching social consent," Journal of Mathematical Economics, Elsevier, vol. 110(C).
    9. 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.
    10. 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.
    11. 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.
    12. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    13. 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..
    14. 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.
    15. 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).
    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. 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.
    18. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "An axiomatic approach towards pandemic performance indicators," Economic Modelling, Elsevier, vol. 116(C).
    19. 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).
    20. Aitor Calo-Blanco, 2015. "Health, responsibility and taxation with a fresh start," Working Papers 15.06, Universidad Pablo de Olavide, Department of Economics.

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    More about this item

    Keywords

    population health; social preferences; 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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