2024/01/01 by J.P. Sevilla · 1 voice · 1 citation
Economics, Econometrics and Finance · Health Professions · #Business #Computer science #Health Systems, Economic Evaluations, Quality of Life #Older Adults Driving Studies #Process management
paper · pdf · doi:10.1017/bca.2024.12
published in Journal of Benefit-Cost Analysis 15(S1), 155-182 (Cambridge University Press)
openalex publication_date 2024/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/21
Abstract There is a need to value health technologies in a way that accommodates their broader economic impacts and competing approaches for doing so have emerged. The Pareto principle (PP) requires policymakers to resolve intrapersonal trade-offs by deferring to the preferences of the individuals facing those trade-offs. Many broad value frameworks such as cost-utility analysis and its extensions, health-centric multicriteria decision analysis, and poverty-free life expectancy are not sufficiently deferential to these preferences, violating PP. I propose using the health-augmented lifecycle model (HALM) to value health technologies in a way that flexibly incorporates the interactions among health and economic factors – specifically mortality and morbidity risks, paid and unpaid work, consumption, leisure, and public and private transfer inflows and outflows--over the life course. It relies on individual preferences, satisfying PP. It is compatible with cost-benefit analysis, social welfare functions, and equivalent income approaches. I calibrate the HALM for the US setting and apply it to a pediatric vaccine.