Scandinavian Working Papers in Economics

COHERE Working Paper,
University of Southern Denmark, COHERE - Centre of Health Economics Research

No 2014:1: Normative foundations for equity-sensitive population health evaluation functions

Juan D. Moreno-Ternero () and Lars Peter Ă˜sterdal ()
Additional contact information
Juan D. Moreno-Ternero: Department of Economics, Universidad Pablo de Olavide, Postal: Ctra. Utrera Km.1, 41013 SEVILLA, Spain
Lars Peter Ă˜sterdal: COHERE, Department of Business and Economics, University of Southern Denmark, Postal: Campusvej 55, DK-5230 Oxdense M, Denmark

Abstract: Standard models for the evaluation of population health, such as the so-called models of aggregate Quality Adjusted Life Years (QALYs), or aggregate Healthy Years Equiva- lent (HYEs), are usually criticized on equity grounds. We provide in this paper normative justi_cations for alternative equity-sensitive models, such as the so-called models of mul- tiplicative QALYs, multiplicative HYEs, and generalizations of the two. Our axiomatic approach assumes social preferences over distributions of individual health states experi- enced in a given period of time. It conveys informational simplicity, as it does not require information about individual preferences on health.

Keywords: Population health; equity; HYEs; QALYs; axioms

JEL-codes: D63; I10

20 pages, January 10, 2014

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