Partially different? The importance of general equilibrium in health economic evaluations: An application to nocturia.

ABSTRACT: Both the human capital approach and the friction cost approach are frequently used to quantify the productivity costs associated with illness, disability or death in health economic evaluations. In this paper we argue that these approaches have one major, but common shortcoming: they only capture partial equilibrium (PE) effects and therefore underestimate the true potential productivity costs associated with health conditions. They neglect the sizable, indirect, ripple effects in the economy captured by general equilibrium (GE) models. To demonstrate our point, we compare a traditional PE with a GE approach for the application to nocturia, a condition characterized by the need to frequently wake up at night to urinate. Nocturia is associated with substantial impairment of daytime function

SUBMITTER: Hafner M 

PROVIDER: S-EPMC10100343 | biostudies-literature | 2023 Mar

REPOSITORIES: biostudies-literature