Methods and Instruments for the Estimation of Production Changes in Economic Evaluations

Abstract

This chapter focuses on the indirect costs of paid work that result from mental illness. It provides an overview of monetary valuation methods and approaches to measure and value production gains and losses. The methods are applied to mental illness, although they have also been applied to other diseases. As mental health and mental health care can have different effects on production, the chapter starts by explaining how to classify the consequences of mental illness for the production of firms. It follows with the definitions of different types of production. This chapter subsequently presents and discusses three major approaches to value production. It pays attention to the human capital approach, the friction costs approach, and the multiplier approach. The chapter ends with a description of survey questions and instruments to measure and value production changes in economic evaluations.