The economic benefits of reducing physical inactivity: an Australian example

Table 3 Economic outcomes from reducing the prevalence of physical inactivity

Economic outcomes	Feasible reduction target^a
		95% Confidence Interval
	Mean (AUD million)	Lower Limit (AUD million)	Upper Limit (AUD million)
Health sector costs	96	n/a	n/a
Production Costs FCA	12	7	18
Recruitment and training costs	5	n/a	n/a
Taxation effects FCA^b	2	1	4
Leisure based production	79	60	103
Home based production	71	61	82
Total production FCA^c	162	136	192
Sensitivity analysis
Production Costs HCA	138	114	161
Taxation effects HCA^b	12	10	15
Total production HCA^c	288	253	326
	Progressive target reduction
Health sector costs	48	n/a	n/a
Production Costs FCA	6	3	9
Recruitment and training costs	2	n/a	n/a
Taxation effects FCA^b	1	0.26	2
Leisure based production	40	30	51
Home based production	36	30	41
Total production FCA^c	81	68	96
Sensitivity analysis
Production Costs HCA	69	58	81
Taxation effects HCA^b	6	5	8
Total production HCA^c	145	127	164

^aThese are not estimates of immediately realizable cash savings ^bTaxation is treated as a transfer payment and should not be added to production effects. ^cTotal production is the sum of workforce production costs, household- and leisure-based production. All estimates uncorrected for joint effects of the presence of multiple risk factors in individuals. HCA: Human Capital Approach; FCA Friction Cost Approach (preferred conservative estimate). Health sector, leisure and home based production based on persons 15+ years. Production, recruitment and training and taxation effects based on persons 15-64 years.

ISSN: 1479-5868