Capabilities as menus: A non-welfarist basis for QALY evaluation
Journal of Health Economics , Volume 32 - Issue 1 p. 128- 137
Quality-Adjusted Life Years (QALYs) are the most widely used measure of health in economic evaluations of health care. Within a welfarist framework QALYs are consistent with people's preferences under stringent assumptions. Several authors have argued that QALYs are a valid measure of health within an extra-welfarist framework. This paper studies the applicability of QALYs within the best-known extra-welfarist framework, Sen's capability approach. We propose a procedure to value capability sets and provide a foundation for QALYs within Sen's capability approach. We show that, under appropriate conditions, the ranking of capabilities can be represented locally by a QALY measure and that a willingness to pay for QALYs can be defined. The validity of QALYs as a general measure of health requires the same stringent conditions as in a welfarist framework.
|Capability approach, Menu-dependent choice, QALYs|
|ERIM Top-Core Articles|
|Journal of Health Economics|
|Organisation||Erasmus Research Institute of Management|
Bleichrodt, H, & Quiggin, J. (2013). Capabilities as menus: A non-welfarist basis for QALY evaluation. Journal of Health Economics, 32(1), 128–137. doi:10.1016/j.jhealeco.2012.10.004