Continuously discounted DALYs of a cohort with deaths and disability beginning at time zero

Replaces the L standard years lost per death and the T years lived with the condition by their present values under continuous discounting at rate r, (1 minus e to the minus rL) over r and (1 minus e to the minus rT) over r, as in HE-FM-YLL-003 and HE-FM-YLD-002. Fox-Rushby and Hanson define DALYs for economic evaluation as the present value of future years of life lost plus the present value of future years lived with disability, and the original DALY used a 3% rate. Discounting shrinks the long stream of years lost to a death more than the shorter stream of illness, so it lowers the weight of deaths prevented. The function exp is the exponential function.

Signature

f_L = (1 - exp(-r * L)) / r; f_T = (1 - exp(-r * T)) / r; DALY_d = D * f_L + S * DW * f_T
Inputs
InputsDefinitionUnit
rContinuous discount rate as a decimal, 0.03 in the article's example and in the original DALYproportion per year, above zero
LStandard remaining life expectancy at the age of deathyears
TYears each survivor lives with the condition before full recoveryyears
DNumber of cohort members who die at the start, all at the same agedeaths
SNumber of cohort members who survive and live with the condition from time zeropeople
DWDisability weight of the condition in this scenarionone
Output
f_LDiscounted value of the L years lost to one deathyears
f_TDiscounted value of T years lived with the condition, before weightingyears
DALY_dPresent value of the DALYs the cohort incurs in one scenariodiscounted years of healthy life lost

Function

Disability-adjusted life years for a cause or a scenario from years of life lost and years lived with disability

Maps the deaths and the non-fatal health loss from a cause, or in one scenario of an economic evaluation, to disability-adjusted life years (DALYs) by adding the years of life lost (YLL) to the years lived with disability (YLD), each calculated by its own formula. YLLs are deaths times a standard loss function of the age at death (HE-FN-YLL-001, HE-FM-YLL-001, with the discounted form HE-FM-YLL-003 and the age-group total HE-CF-YLL-001), and YLDs are prevalent cases times a disability weight (HE-FM-DWT-001) or incident cases times the weight and the duration (HE-FN-YLD-001, HE-FM-YLD-001, discounted in HE-FM-YLD-002). This package adds the sum itself, the DALYs of a cohort in one scenario, DALYs averted and cost per DALY averted between two scenarios, the continuously discounted cohort form and the DALY rate per 100,000 population. DALYs averted by a change in disability weights alone, with mortality unchanged, are HE-FM-DWT-005, and the general incremental ratio is HE-FM-ICER-001. Notation follows the Disability-Adjusted Life Year article.

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Implementations

  • Excel

    Continuously discounted cohort DALYs from named cells

    With Deaths, StdLE, Survivors, DisWeight, DurationYrs and DiscRate named, the cell returns the discounted DALYs of one scenario, held in DALYDisc.

    =Deaths*(1-EXP(-DiscRate*StdLE))/DiscRate+Survivors*DisWeight*(1-EXP(-DiscRate*DurationYrs))/DiscRate

Assumptions

  • Deaths and onset of illness both at time zero in a discounted cohort DALY

    Each death and the start of each survivor's illness fall at time 0, so both streams are discounted from the same point. When death follows T years of illness the years lost begin at T, and their present value is multiplied by e to the minus rT. Larson's recalculation of the Fox-Rushby and Hanson case gives 5.1836 discounted YLDs for 10 years at a weight of 0.6 and 15.9823 discounted YLLs for the 34.73 years lost after them, 21.166 DALYs in all.

  • Continuous discounting at one rate with no age weighting

    One constant rate applies throughout, in continuous time as in Larson's equation 1, and the age weights of the original DALY are left out. Discounted DALYs serve economic evaluation or historical comparison, since GBD from 2010 onwards and WHO after its 2012 decision use a 0% rate.

Worked examples

  • Article's untreated cohort discounted continuously at 3 per cent

    Discounting the 45 standard years per death to 24.692 and the 10 years of illness to 8.639 gives 960.37 DALYs in place of 1,440. The article shows 960.35 because it multiplies the rounded factors.

    D = 20; L = 45; S = 180; DW = 0.3; T = 10; r = 0.03; f_L = 24.6920; f_T = 8.6394; DALY_d = 960.37
  • Article's treated cohort discounted continuously at 3 per cent

    With 8 deaths and 192 survivors at a weight of 0.1 the discounted total is 363.41 DALYs, as in the article.

    D = 8; L = 45; S = 192; DW = 0.1; T = 10; r = 0.03; f_L = 24.6920; f_T = 8.6394; DALY_d = 363.41
  • Discounted cohort DALYs at a rate close to zero as a limiting case

    At a rate of 0.0000001 the factors are close to 45 and 10 years and the total returns the undiscounted 1,440 DALYs of HE-FM-DALY-002 to two decimals, which checks the implementation.

    D = 20; L = 45; S = 180; DW = 0.3; T = 10; r = 0.0000001; f_L = 44.9999; f_T = 10.0000; DALY_d = 1440.00

Common errors

  • Discrete annual factors used in place of continuous discounting for cohort DALYs

    Counting each year at its start and discounting by 1/(1.03)^t gives factors of 25.254 and 8.786 and 979.54 DALYs for the untreated cohort, about 2% more than the continuous 960.37 (computed here for illustration). Larson regards differences of this size as minor, but the convention is stated and used in both scenarios.

  • Discounted cost per DALY averted compared with undiscounted results

    Discounting raises the article's cost per DALY averted from USD 500 to about USD 744, so a discounted ratio set against an undiscounted one, or against burden estimates that use a 0% rate, misstates the difference between programmes. WHO-CHOICE presents health benefits both undiscounted and discounted at 3%.

Sources

  • Larson on continuously discounted DALYs without age weighting

    Larson BA. Calculating disability-adjusted-life-years lost (DALYs) in discrete-time. Cost Effectiveness and Resource Allocation. 2013;11 article 18 (full text read). Equation 1, YLL(r,0) equal to (1/r)(1 minus e to the minus rL) without age weighting, 8.6394 for 10 years at 3%. Equations 2 and 3, the Fox-Rushby and Hanson case with 5.1836 discounted YLDs and 15.9823 discounted YLLs starting after 10 years, 21.166 DALYs. Table 1, the discrete value 8.786, a difference of 1.7% described as minor.

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  • Fox-Rushby and Hanson definition of DALYs as present values

    Fox-Rushby JA, Hanson K. Calculating and presenting disability adjusted life years (DALYs) in cost-effectiveness analysis. Health Policy and Planning. 2001;16(3) 326-331 (abstract read). DALYs are the sum of the present value of future years of lifetime lost through premature mortality and the present value of years of future lifetime adjusted for the average severity of any disability.

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  • Murray on the 3 per cent discount rate of the original DALY

    Murray CJL. Quantifying the burden of disease, the technical basis for disability-adjusted life years. Bulletin of the World Health Organization. 1994;72(3) 429-445 (abstract read). The four social choices of the original DALY, a standard based on model life table West Level 26, exponential age weights, six severity classes each assigned a severity weight between 0 and 1, and a 3% discount rate.

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Canonical Identity

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