PharmacoEconomics

23 Pages 5766 Words

timate productivity losses associated with disease morbidity and mortality
 Measures the productivity contribution to society
 Disadvantages:
1. Fails to take consideration imperfections in the labor market (such as job discrimination)
2. Underestimates the value of women, the youth, the elderly & minority
3. Does not capture the value of no market activities such as housekeeping or volunteer work
o Willingness to pay approach
 Individuals are asked hypotical questions regarding their willingness to pay (WTP) to reduce their probability of death or morbidity
 Used less frequently
 Disadvantages:
1. Difficult to apply
2. Assumes that individuals can comprehend & respond to questions involving small changes in the risk of significant events.
3. Affected by earning; lower income earners tend to be willing to pay less higher income earners.

• Psychosocial or Intangible costs
o Measures the effect disease has on one’s quality of life
o Examples: Pian, suffering, grief, stress, fear, anxie...