Cited by 358Health Systems, Economic Evaluations, Quality of LifeEconomic and Environmental ValuationGlobal Health Care Issues

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A Practical Guide for Calculating Indirect Costs of Disease

Koopmanschap, Marc A., Rutten, Frans F.H.·1996·PharmacoEconomics

DOI 10.2165/00019053-199610050-00003

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Abstract

There may be some discussion about whether indirect costs should be taken into account at all in an economic appraisal, but there is certainly considerable debate about the proper way of estimating these costs. This reviews offers a practical guide for quantifying and valuing these indirect costs of disease, both at an aggregated level of general cost of illness studies, and in an economic appraisal of specific healthcare programmes. Two methods of calculating these costs are considered: the traditional human capital approach, and the more recently developed friction cost method. The former method estimates the potential value of lost production as a result of disease, whereas the latter method intends to derive more realistic estimates of indirect costs, taking into account the degree of scarcity of labour in the economy. All necessary steps in the estimation procedure and the data required at various points will be described and discussed in detail.

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The friction cost method for measuring indirect costs of disease
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Additional file 4 of Cost-effectiveness analysis of combined cognitive and vocational rehabilitation in patients with mild-to-moderate TBI: results from a randomized controlled trial
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Authors: Koopmanschap, M. A., & Rutten, F. F. H.
Affiliations: Erasmus University Rotterdam (NL)
Corresponding author: Koopmanschap, Marc A.
Venue: PharmacoEconomics
Publisher: Springer Science and Business Media LLC
Published: 1996-11
Volume: 10
Issue: 5
Pages: 460-466
ISSN: 1170-7690 (ISSN-L)
DOI: 10.2165/00019053-199610050-00003
OpenAlex: W1980604588
Cited by: 358
References: 9
Citations by year: 2026: 7 · 2025: 5 · 2024: 8 · 2023: 2 · 2022: 17 · 2021: 9 · 2020: 8 · 2019: 10 · 2018: 10 · 2017: 19 · 2016: 11 · 2015: 11 · 2014: 14 · 2013: 12 · 2012: 8
FWCI: 22.73
Type: journal article
Language: en
Open access: closed
Locations: PharmacoEconomics (publishedVersion)
PubMed (publishedVersion)
EUR Research Repository (Erasmus University Rotterdam) (publishedVersion)
EUR Research Repository (Erasmus University Rotterdam) (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Health Systems, Economic Evaluations, Quality of Life
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Global Health Care Issues
Keywords: economic burden, human capital approach, friction cost method, productivity loss, economic evaluation, labor shortage, cost estimation
MeSH terms: Cost-Benefit Analysis, Delivery of Health Care, Humans, Disease Management

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A Practical Guide for Calculating Indirect Costs of Disease

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