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Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries
BACKGROUND: The friction cost approach (FCA) offers an alternative to the dominant human capital approach to value productivity losses. Application of the FCA in practice is limited largely due to data availability. Recent attempts have tried to standardise the estimation of friction periods across...
Autores principales: | , , , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer International Publishing
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10088804/ https://www.ncbi.nlm.nih.gov/pubmed/37036642 http://dx.doi.org/10.1007/s40273-023-01261-y |
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author | Hanly, Paul Ortega Ortega, Marta Pearce, Alison de Camargo Cancela, Marianna Soerjomataram, Isabelle Sharp, Linda |
author_facet | Hanly, Paul Ortega Ortega, Marta Pearce, Alison de Camargo Cancela, Marianna Soerjomataram, Isabelle Sharp, Linda |
author_sort | Hanly, Paul |
collection | PubMed |
description | BACKGROUND: The friction cost approach (FCA) offers an alternative to the dominant human capital approach to value productivity losses. Application of the FCA in practice is limited largely due to data availability. Recent attempts have tried to standardise the estimation of friction periods across Europe, but to date, this has not been attempted elsewhere. Our aim was to estimate friction periods for 17 Organisation for Economic Co-operation and Development (OECD) member countries between 2010 and 2021 based on routinely published data. METHODS: We derived friction period estimates for Australia, Austria, Canada, Czechia, Finland, Germany, Hungary, Japan, Korea, Luxembourg, Norway, Poland, Portugal, Sweden, Switzerland, the United Kingdom and the United States. Vacancy stock and flow data was sourced from the OECD’s short-term labour situation database from 2010 to 2021, and included the impact of Covid-19 on the labour market. The estimated friction periods were applied to cost cancer-related premature mortality for the United States as an illustrative case. RESULTS: The average friction period in the five non-European countries (Australia, Canada, Korea, Japan and the United States) was 61.0 days (SD 9.4) (range between 44.8 days in Korea and 82.2 days in Canada) and the average friction period in the 12 European countries was 60.6 days (SD 14.8) (range between 34.1 days in Switzerland and 137.3 days in Czechia). In both cases, the outbreak of Covid-19 increased the length of the friction period. Our illustrative case revealed that productivity costs in the US were over a third lower using the study-specific friction period (56 days) compared with the conventionally assumed 90-day friction period applied in the literature as a default measure. CONCLUSIONS: Our results expand the potential application of the FCA outside of Europe and will support greater utilisation of the FCA and wider inclusion of productivity costs in societal-based economic evaluations based on the use of widely available and updated key labour market variables in our selected countries. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s40273-023-01261-y. |
format | Online Article Text |
id | pubmed-10088804 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Springer International Publishing |
record_format | MEDLINE/PubMed |
spelling | pubmed-100888042023-04-12 Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries Hanly, Paul Ortega Ortega, Marta Pearce, Alison de Camargo Cancela, Marianna Soerjomataram, Isabelle Sharp, Linda Pharmacoeconomics Original Research Article BACKGROUND: The friction cost approach (FCA) offers an alternative to the dominant human capital approach to value productivity losses. Application of the FCA in practice is limited largely due to data availability. Recent attempts have tried to standardise the estimation of friction periods across Europe, but to date, this has not been attempted elsewhere. Our aim was to estimate friction periods for 17 Organisation for Economic Co-operation and Development (OECD) member countries between 2010 and 2021 based on routinely published data. METHODS: We derived friction period estimates for Australia, Austria, Canada, Czechia, Finland, Germany, Hungary, Japan, Korea, Luxembourg, Norway, Poland, Portugal, Sweden, Switzerland, the United Kingdom and the United States. Vacancy stock and flow data was sourced from the OECD’s short-term labour situation database from 2010 to 2021, and included the impact of Covid-19 on the labour market. The estimated friction periods were applied to cost cancer-related premature mortality for the United States as an illustrative case. RESULTS: The average friction period in the five non-European countries (Australia, Canada, Korea, Japan and the United States) was 61.0 days (SD 9.4) (range between 44.8 days in Korea and 82.2 days in Canada) and the average friction period in the 12 European countries was 60.6 days (SD 14.8) (range between 34.1 days in Switzerland and 137.3 days in Czechia). In both cases, the outbreak of Covid-19 increased the length of the friction period. Our illustrative case revealed that productivity costs in the US were over a third lower using the study-specific friction period (56 days) compared with the conventionally assumed 90-day friction period applied in the literature as a default measure. CONCLUSIONS: Our results expand the potential application of the FCA outside of Europe and will support greater utilisation of the FCA and wider inclusion of productivity costs in societal-based economic evaluations based on the use of widely available and updated key labour market variables in our selected countries. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s40273-023-01261-y. Springer International Publishing 2023-04-10 /pmc/articles/PMC10088804/ /pubmed/37036642 http://dx.doi.org/10.1007/s40273-023-01261-y Text en © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2023, Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Original Research Article Hanly, Paul Ortega Ortega, Marta Pearce, Alison de Camargo Cancela, Marianna Soerjomataram, Isabelle Sharp, Linda Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries |
title | Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries |
title_full | Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries |
title_fullStr | Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries |
title_full_unstemmed | Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries |
title_short | Estimating Global Friction Periods for Economic Evaluation: A Case Study of Selected OECD Member Countries |
title_sort | estimating global friction periods for economic evaluation: a case study of selected oecd member countries |
topic | Original Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10088804/ https://www.ncbi.nlm.nih.gov/pubmed/37036642 http://dx.doi.org/10.1007/s40273-023-01261-y |
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