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On aggregating QALYs: a comment on Dolan.

M Johannesson1

  • 1Department of Economics, Stockholm School of Economics, Sweden. hemj@hhs.se

Journal of Health Economics
|October 28, 1999
PubMed
Summary
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Dolan's empirical method for estimating social welfare functions lacks theoretical foundation. It incorrectly measures only altruistic values, neglecting individuals' own health utility, thus failing to capture true social welfare.

Area of Science:

  • Health Economics
  • Social Welfare Analysis
  • Utility Theory

Background:

  • Dolan proposed an empirical method to estimate social welfare functions.
  • Previous methods may not fully capture individual and societal well-being.

Purpose of the Study:

  • To theoretically evaluate Dolan's proposed empirical method for social welfare function estimation.
  • To identify foundational limitations in Dolan's approach.

Main Methods:

  • Theoretical modeling to analyze the empirical method.
  • Critique of the method's reliance on specific utility components.

Main Results:

  • Dolan's empirical method lacks a sound theoretical basis.
  • The method fails to account for individual utility derived from one's own health status.

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  • It exclusively measures altruistic values towards others' health.
  • Conclusions:

    • The proposed empirical method is theoretically flawed for estimating social welfare.
    • Future research should incorporate both self-utility and altruistic utility for accurate social welfare measurement.