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Estimating productivity costs using the friction cost approach in practice: a systematic review

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Abstract

Introduction

The choice of the most appropriate approach to valuing productivity loss has received much debate in the literature. The friction cost approach has been proposed as a more appropriate alternative to the human capital approach when valuing productivity loss, although its application remains limited. This study reviews application of the friction cost approach in health economic studies and examines how its use varies in practice across different country settings.

Methods

A systematic review was performed to identify economic evaluation studies that have estimated productivity costs using the friction cost approach and published in English from 1996 to 2013. A standard template was developed and used to extract information from studies meeting the inclusion criteria.

Results

The search yielded 46 studies from 12 countries. Of these, 28 were from the Netherlands. Thirty-five studies reported the length of friction period used, with only 16 stating explicitly the source of the friction period. Nine studies reported the elasticity correction factor used. The reported friction cost approach methods used to derive productivity costs varied in quality across studies from different countries.

Conclusions

Few health economic studies have estimated productivity costs using the friction cost approach. The estimation and reporting of productivity costs using this method appears to differ in quality by country. The review reveals gaps and lack of clarity in reporting of methods for friction cost evaluation. Generating reporting guidelines and country-specific parameters for the friction cost approach is recommended if increased application and accuracy of the method is to be realized.

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Acknowledgments

Jesse Kigozi was supported by the Arthritis Research UK Primary Care Centre (Doctoral Research Award in the area of economics of back pain) as part of a National Institute for Health Research programme of work funded through Keele University. The publication of this work is independent of the supporter’s approval or censorship of the manuscript.

Conflict of interest

The authors have no other financial relationships to disclose.

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Authors and Affiliations

  1. Health Economics Unit, School of Health and Population Sciences, University of Birmingham, Birmingham, B15 2TT, UK

    Jesse Kigozi, Sue Jowett, Pelham Barton & Joanna Coast

  2. Arthritis Research UK Primary Care Centre, Primary Care Sciences, Keele University, Staffordshire, ST5 5BG, UK

    Martyn Lewis

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  1. Jesse Kigozi
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  2. Sue Jowett
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  3. Martyn Lewis
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Kigozi, J., Jowett, S., Lewis, M. et al. Estimating productivity costs using the friction cost approach in practice: a systematic review. Eur J Health Econ 17, 31–44 (2016). https://doi.org/10.1007/s10198-014-0652-y

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