VALUE OF LIFE AND COST OF PRE-MATURE DEATHS WITH THE PERSPECTIVE OF PRODUCTIVITY AS NET TAX REVENUE- A COMPARISON IN USA, CANADA, JAPAN AND AUSTRALIA
Author(s)
Yenilmez FB1, Tuna E1, Atikeler K1, Kockaya G2, Tatar M1
1Hacettepe University, Ankara, Turkey, 2Health Economics and Policy Association, Ankra, Turkey
OBJECTIVES The Human Capital Theory emphasizes investments to the healthcare sector as an important element in achieving and sustaining economic development. Investments to healthcare sector improves macro and micro economic outcomes for the whole society. The aim of this study is to calculate the possible produced value for a life-time term(VLT) and cost of pre-mature deaths(CPD) from the productivity for USA, Canada, Japan and Australia. METHODS Net present value(NPV) of the taxes and spending for each year were calculated. For calculating NPV in the government perspectives, two modelling approaches were combined, human capital modelling based on lives saved and lost productivity, and generational accounting, which accounts for a range of other government fiscal transfers to citizens. The possible produced value for a life-time term for each country were assumed as calculating the total NPV for each country depending on the countries life expectancy. CPD for each countries were assumed as the difference between NPV on the year of life expectancy and each decades as life years 60, 50, 40, 30, 20, 10. The economic values for the model of each country derived from World Bank, OECD, UNESCO or WHO. RESULTS Possible produced value for a life-time term for each country were calculated as US $ 1.415.530, US$ 774.663, US$ 238.236 and US$ 2.917.835 for USA, Canada, Japan and Australia, respectively. CPD per person for USA were calculated as US$ -1.526.126, US$ -1.661.257, US$ -1.300.923, US$ -796.547, US$ - 351.827 and US$ -40.507 for the life years 10, 20, 30, 40, 50 and 60 respectively. The trend was same for Canada, Japan and Australia. CONCLUSIONS However the study was based on a hypothetical model that calculated the NPV with the taxes and spending in a life-time term, the results of each country were parallel.
Conference/Value in Health Info
2014-11, ISPOR Europe 2014, Amsterdam, The Netherlands
Value in Health, Vol. 17, No. 7 (November 2014)
Code
PHP116
Topic
Health Service Delivery & Process of Care
Topic Subcategory
Hospital and Clinical Practices
Disease
Multiple Diseases