Integrating Equity and Productivity in Health Evaluation

Kristian S. Hansen (), Juan Moreno-Ternero and Lars Peter Østerdal
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Kristian S. Hansen: National Research Centre for the Working Environment (NFA), Copenhagen, Denmark

No 9-2025, Working Papers from Copenhagen Business School, Department of Economics

Abstract: This paper develops a unified framework for evaluating health outcomes that jointly incorporates equity and productivity. Extending beyond traditional QALYs, PALYs, and the more recent PQALYs, we introduce a class of evaluation functions that integrate fairness- and productivity-sensitive principles. By imposing normative principles, includ-ing independence from measurement scales and Pigou-Dalton transfer properties, we ob-tain tractable power-form representations. In balancing distributive justice and efficiency, the framework provides a coherent foundation for assessing health interventions in con-texts where both equity and productive capacity are at stake.

Keywords: Health; Productivity; Equity; Distribution; QALYs; PALYs; PQALYs (search for similar items in EconPapers)
JEL-codes: D63 I10 J24 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2025-10-07
New Economics Papers: this item is included in nep-hea and nep-lma
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