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Calculating concentration index with repetitive values of indicators of economic welfare

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  • Chen, Zhuo
  • Roy, Kakoli

Abstract

Repetitive values of the ranking indicators of economic welfare are often introduced due to incidental ties or censoring in the welfare variable, or the categorical nature of welfare variables used in numerous national surveys. In calculating concentration index (CI), assigning different fractional ranks to observations that have same values of the welfare measure leads to unstable and inconsistent CI estimates when the welfare variable is categorical or censored. In this paper, we establish an interval within which the CI estimates lie, and propose a solution, which is an extension of (Kakwani, N.C., Wagstaff, A., van Doorslaer, E., 1997. Socioeconomic inequalities in health: measurement, computation, and statistical inference. Journal of Econometrics 77, 87-103), for consistent and replicable estimates of CI when there are a substantial number of ties of the welfare indicator.

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  • Chen, Zhuo & Roy, Kakoli, 2009. "Calculating concentration index with repetitive values of indicators of economic welfare," Journal of Health Economics, Elsevier, vol. 28(1), pages 169-175, January.
  • Handle: RePEc:eee:jhecon:v:28:y:2009:i:1:p:169-175
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    References listed on IDEAS

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    3. Clarke, Philip & Van Ourti, Tom, 2010. "Calculating the concentration index when income is grouped," Journal of Health Economics, Elsevier, vol. 29(1), pages 151-157, January.
    4. Martin Siegel & Andreas Mielck & Werner Maier, 2015. "Individual Income, Area Deprivation, and Health: Do Income‐Related Health Inequalities Vary by Small Area Deprivation?," Health Economics, John Wiley & Sons, Ltd., vol. 24(11), pages 1523-1530, November.
    5. Zhuo Chen & Kakoli Roy & Carol A. Gotway Crawford, 2012. "Evaluation Of Variance Estimators For The Concentration And Health Achievement Indices: A Monte Carlo Simulation," Health Economics, John Wiley & Sons, Ltd., vol. 21(11), pages 1375-1381, November.
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    7. John E. Ataguba, 2022. "A short note revisiting the concentration index: Does the normalization of the concentration index matter?," Health Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 1506-1512, July.
    8. Pulok, Mohammad Habibullah & van Gool, Kees & Hall, Jane, 2020. "Horizontal inequity in the utilisation of healthcare services in Australia," Health Policy, Elsevier, vol. 124(11), pages 1263-1271.
    9. Walsh, Brendan & Cullinan, John, 2015. "Decomposing socioeconomic inequalities in childhood obesity: Evidence from Ireland," Economics & Human Biology, Elsevier, vol. 16(C), pages 60-72.
    10. Tetsuji Yamada & Chia-Ching Chen & Chiyoe Murata & Hiroshi Hirai & Toshiyuki Ojima & Katsunori Kondo & Joseph R. Harris III, 2015. "Access Disparity and Health Inequality of the Elderly: Unmet Needs and Delayed Healthcare," IJERPH, MDPI, vol. 12(2), pages 1-28, February.
    11. Carnazza, Giovanni & Liberati, Paolo & Resce, Giuliano, 2023. "Income-related inequality in smoking habits: A comparative assessment in the European Union," Health Policy, Elsevier, vol. 128(C), pages 34-41.
    12. Ovrum, Arnstein & Rickertsen, Kyrre, 2011. "Inequality in Health Versus Inequality in Lifestyles," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114556, European Association of Agricultural Economists.
    13. Mingsheng Chen & Zhonghua Wang, 2022. "Benefits for Older People from Government Subsidies for Healthcare in China: Is the Distribution Equitable?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 505-521, April.
    14. Veruska Oppedisano & Gilberto Turati, 2015. "What are the causes of educational inequality and of its evolution over time in Europe? Evidence from PISA," Education Economics, Taylor & Francis Journals, vol. 23(1), pages 3-24, February.
    15. Philip Clarke & Tom Van Ourti, 2009. "Correcting the Bias in the Concentration Index when Income is Grouped," CEPR Discussion Papers 599, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    16. Zhou, Guoliang & Chen, Ran & Chen, Mingsheng, 2020. "Equity in health-care financing in China during the progression toward universal health coverage," China Economic Review, Elsevier, vol. 61(C).
    17. Kankeu, Hyacinthe Tchewonpi & Ventelou, Bruno, 2016. "Socioeconomic inequalities in informal payments for health care: An assessment of the ‘Robin Hood’ hypothesis in 33 African countries," Social Science & Medicine, Elsevier, vol. 151(C), pages 173-186.
    18. Wagstaff, Adam & Bilger, Marcel & Buisman, Leander R. & Bredenkamp, Caryn, 2014. "Who benefits from government health spending and why? a global assessment," Policy Research Working Paper Series 7044, The World Bank.
    19. Mohammad Habibullah Pulok & Kees Gool & Mohammad Hajizadeh & Sara Allin & Jane Hall, 2020. "Measuring horizontal inequity in healthcare utilisation: a review of methodological developments and debates," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(2), pages 171-180, March.

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