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Integrating equity and productivity in health evaluation
Kristian S Hansen1, Juan D Moreno-Ternero2, Lars P Østerdal3
1National Research Centre for the Working Environment (NFA), Copenhagen, Denmark.
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 broader class of evaluation functions that integrate equity- and productivity-sensitive conditions. By imposing several normative criteria, including independence from measurement scales and Pigou-Dalton transfer principles, we obtain tractable power-form representations. In balancing equity and efficiency, the framework provides a coherent foundation for assessing interventions in contexts where both health and productive capacity are at stake.
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