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Capabilities as menus: A non-welfarist basis for QALY evaluation

Han Bleichrodt and John Quiggin

Journal of Health Economics, 2013, vol. 32, issue 1, 128-137

Abstract: Quality-Adjusted Life Years (QALYs) are the most widely used measure of health in economic evaluations of health care. Within a welfarist framework QALYs are consistent with people's preferences under stringent assumptions. Several authors have argued that QALYs are a valid measure of health within an extra-welfarist framework. This paper studies the applicability of QALYs within the best-known extra-welfarist framework, Sen's capability approach. We propose a procedure to value capability sets and provide a foundation for QALYs within Sen's capability approach. We show that, under appropriate conditions, the ranking of capabilities can be represented locally by a QALY measure and that a willingness to pay for QALYs can be defined. The validity of QALYs as a general measure of health requires the same stringent conditions as in a welfarist framework.

Keywords: Capability approach; QALYs; Menu-dependent choice (search for similar items in EconPapers)
JEL-codes: D63 D70 I14 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Working Paper: Capabilities as Menus: A Non-Welfarist Basis for QALY Evaluation (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:32:y:2013:i:1:p:128-137

DOI: 10.1016/j.jhealeco.2012.10.004

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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