SDH: Economic Rationales

Public health evidence on the social gradient in health is compelling, as is the moral argument. Yet economic rationales to address the social determinants of health are also important. Understanding economic rationales - both for and against - is critical to action on the social determinants of health. Four thematic areas have emerged as priorities in this domain. First, it is important for practitioners to be able to argue the economic logic that links the social gradient in health to overall macroeconomic prosperity and social progress (building on the work of the Stiglitz, Sen, Fitoussi Commission). Second, economic rationales for policies in specific sectors are also needed - i.e. the costs and the benefits in other policy areas e.g., income distribution, education, social protection, housing, and migration. Economics has the advantage of providing a common frame of reference for describing welfare changes across policy sectors, but it is essential that the framing of the question and the associated methods are appropriate to the task. This is a third area of interest. Several groups from academia and governmental or inter-governmental agencies from around the world are now working on articulating new analytical methods and standards for economic evaluations. Fourth, health care costs and the share of health care expenditure in the total government budget have in practice provided compelling arguments for health leaders and broader government to be interested in health promoting policies across all sectors.

SDH members interested in furthering content development or discussion of any of these topics should please contact us.