English

Integrating equity and productivity in health evaluation

Theoretical Economics 2026-05-05 v1

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.

Keywords

Cite

@article{arxiv.2605.01763,
  title  = {Integrating equity and productivity in health evaluation},
  author = {Kristian S. Hansen and Juan D. Moreno-Ternero and Lars P. Østerdal},
  journal= {arXiv preprint arXiv:2605.01763},
  year   = {2026}
}