Production Gains: Should They Count in Health Care Evaluations?

Jan Abel Olsen

Scottish Journal of Political Economy, 1994, vol. 41, issue 1, 69-84

Abstract: The extent to which production gains should be taken into account in economic analyses of health care depends on how the social welfare function is defined. Two welfare criteria are discussed; the utilitarian and the Pareto-criterion. According to the former there is a relevant production gain which is a welfare gain. If welfare gains are defined in terms of potential Pareto-improvements, the inclusion of production gains depends on whether any increase in health care arising from having a person return to work is larger than the amount of health care needed to cure the person, or whether those who get lower priority in terms of reduced health care are compensated through increased consumption of other goods. Copyright 1994 by Scottish Economic Society.

Date: 1994
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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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