We develop a unified framework for the measurement and valuation of health and productivity. Within this framework, we characterize evaluation functions allowing for compromises between the classical quality-adjusted life years (QALYs) and its polar productivity-adjusted life years (PALYs). Our framework and characterization results provide a new normative basis for the economic evaluation of health care interventions, as well as occupational health and safety policies, aimed to impact both health and productivity of individuals.
@article{arxiv.2404.04121,
title = {Productivity and quality-adjusted life years: QALYs, PALYs and beyond},
author = {Kristian S. Hansen and Juan D. Moreno-Ternero and Lars P. Østerdal},
journal= {arXiv preprint arXiv:2404.04121},
year = {2024}
}