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The goal of this chapter is to sketch out a theoretical frontier model capable of estimating the production of well-being from healthcare interventions. The model is multidimensional in nature and takes a starting point in the utilization of healthcare interventions to produce a change in disease severity. The model allows for many healthcare interventions, such as doctor’s visits and pharmaceuticals, to be used as inputs in the production of improvements in disease severity assessed with different clinical outcome measures. Moreover, the model does not end with the production of clinical improvements but continues with estimating how the change in disease severity affects the individual’s ability to maximize well-being. Data from the Swedish National Register for Systemic Treatment of Psoriasis (PsoReg) are utilized to illustrate the model.
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