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QALY-maximization vs. QALE-equality. Empirical quantification and parameterization the Achievement Index. Trygve Ottersen, MD, PhD student University of Bergen Harvard Program in Ethics and Health. Research group in Global health: Ethics, economics and culture. Context. Priority-setting
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QALY-maximization vs. QALE-equality Empirical quantification and parameterization the Achievement Index Trygve Ottersen, MD, PhD student University of Bergen Harvard Program in Ethics and Health Research group in Global health: Ethics, economics and culture
Context • Priority-setting • Cost-effectiveness analysis • Summary measures of population health
Health maximization Equality in health VS World Health Report 2000. Health Systems: Improving Performance
The achievement index Wagstaff 2002. Inequality aversion, health inequalities and health achievement. Journal of Health Economics
Objective Question How much importance should be attributed to the goal of maximizing health relative to that of benefiting the worse off? Project Develop and test method to answer this question, so as to best provide input for the parameterization of the Achievement Index
Results: Achievement Index Wagstaff 2002. Inequality aversion, health inequalities and health achievement. Journal of Health Economics Chotikapanich and Griffiths 2001. On calculation of the extended Gini coefficient. Review of Income and wealth
Results: Achievement Index STATA 9.2 v = 1,30 for median data v = 1,19 – 1,45 R-squared: 0,970 Root MSE: 0,318 Mean data: v = 1,24, R-squared 0,997, root MSE 0,094
Results: Method • 19-26 %
Lessons • Maximiziation of health not all that matters • Ranking tasks can expose inconstencies • Deliberation / guidance might be required • Context important: • Absolute level • Absolute differences • Relative differences
Results: Other differences Atkinson 1970. On the measurement of inequality
Results: Other differences Olsen 1994. Persons vs years: Two ways of eliciting implicit weights. Health Economics Rodriguez-Miguez and Pinto-Prades 2002. Measuring the social importance of concentration or dispersion of individual health benefits. Health Economics
Subcharacteristics Subcharacteristics related to QALE level: • Rank • Relative difference (ratio) • Absolute difference
Welfare functions wi = v(1-Ri)v-1 wi = (href/hi)ε wi = eα(href-hi) Wagstaff 2002. Inequality aversion, health inequalities and health achievement. Journal of Health Economics Atkinson 1970. On the measurement of inequality Olsen 1994. Persons vs years: Two ways of eliciting implicit weights
Results III: Welfare functions Rank wi = v(1-Ri)v-1v = 1,46 R2 = Residual = 1,12 Relative difference wi = (href/hi)εε = 0,64 R2 = 0,9718 Residual = 1,97 Absolute difference wi = eα(href-hi)α = 0,022 R2 = 0,9562 Residual = 0,28
The achievement index wi wi = v(1-Ri)v-1 Wagstaff 2002. Inequality aversion, health inequalities and health achievement. Journal of Health Economics