The importance of health capital in an ageing population: a QALY approach

Abstract

The importance of health capital, especially in relation to an aged population, is discussed. The value of health as a stock is important because it may contribute to the well-being and individual independence that influences the expectations and desires of humans for activities. Expected depreciation of health capital between two points in time may imply a demand for investments in health, which corresponds to flows of health services and activities performed by individuals. An efficient allocation of resources in this area demands measurement of health that is connected with analysis of activities that promote health in different age groups and activities. This paper presents the use of QALY in several empirical studies that have dealt with different ways to increase health capital. All of the cases illustrate the importance of new technologies to improve cost efficiency in services used by aged people.