The friction cost method for measuring indirect costs of disease

https://doi.org/10.1016/0167-6296(94)00044-5Get rights and content

Abstract

A new approach for estimating the indirect costs of disease, which explicitly considers economic circumstances that limit production losses due to disease, is presented (the friction cost method). For the Netherlands the short-term friction costs in 1990 amount to 1.5–2.5% of net national income (NNI), depending on the extent to which short-term absence from work induces production loss and costs. The medium-term macro-economic consequences of absence from work and disability reduce NNI by an additional 0.8%. These estimates are considerably lower than estimates based on the traditional human capital approach, but they better reflect the economic impact of illness.

References (44)

  • CBS (Central Bureau for Statistics)

    Data on absence from work by age and sex

    Diagnosis Statistics 1988 (Den Haag)

    (1989)
  • CBS (Central Bureau for Statistics)

    Mortality by cause of death, age and sex 1988

    Health Monthstatistics (Den Haag)

    (1989)
  • CBS (Central Bureau for Statistics)

    Socio-economic Monthstatistics (Den Haag)

    (1989)
  • CBS (Central Bureau for Statistics)

    Labour Force Survey 1988 (Dan Haag)

    (1989)
  • CBS (Central Bureau for Statistics)

    Socio-economic Monthstatistics (Den Haag)

    (1990)
  • CBS (Central Bureau for Statistics)

    Data on absence from work by age and sex

    Diagnose Statistics 1990 (Den Haag)

    (1991)
  • CBS (Central Bureau for Statistics)

    Mortality by cause of death, age and sex 1990

    Health Monthstatistics (Den Haag)

    (1991)
  • CBS (Central Bureau for Statistics)

    Labour Force Survey 1990 (Den Haag)

    (1991)
  • CBS (Central Bureau for Statistics)

    Socio-economic Monthstatistics (Den Haag)

    (1991)
  • CPB (Central Planning Bureau)

    Uncertainties on labour time reduction in the medium term

    Working document

    (1987)
  • CPB (Central Planning Bureau)

    Central Economic Plan 1992 (Den Haag)

    (1992)
  • CPB (Central Planning Bureau)

    FKSEC: A macro-econometric model for the Netherlands

    (1992)
  • Cited by (883)

    View all citing articles on Scopus
    View full text