Capability Well-being and Health: Monetary Valuation and Population Normative Data

Abstract

Subjective well-being approach, a non-preference-based method, has been steadily gaining popularity for valuing non-market goods like quality-adjusted life year (QALYs). It is an approach that uses econometric regression analysis for the estimation of a shadow price for non-market goods. Moving beyond the QALY, capability instruments have in recent years been hailed for providing broader evaluative potential for measuring well-being. In this study, an estimation of the monetary value of a year in full capability (YFC) was calculated and compared to monetary value of a QALY for the Hungarian population. Another important element of healthcare that decision makers need to consider is the different patient groups and the general population. Population norms based on a large representative general population sample in Hungary will be presented to compare VAS and capability scores. Data for the study was obtained from a cross sectional, representative online survey on the Hungarian population (aged 18 and above). Socio-demographic data such as gender, age, level of education, employment status, marital status, monthly net household income, and household size were collected. Survey questions covered subjects of interest such as wellbeing, health, satisfaction, and happiness using standardized questionnaires namely: VAS, ICECAP-A, FSSQ, and SWLS. What was found was that health (VAS) and capability (ICECAP-A) and income had a positive and significant effect on SWB. The monetary value of one QALY and one YFC were 35 886 EUR and 52 883 EUR respectively. In terms of population norms, for the overall sample, the average ICECAP-A and VAS score is 0.7 (SD=2.23).