On the consistent measurement of attainment and shortfall inequality
AbstractIn measuring inequality of a bounded variable such as health status, one can focus on attainments or shortfalls. However, rankings of social states by attainment and shortfall inequality do not necessarily mirror one another. We propose a requirement, that attainment inequality and shortfall inequality be measured consistently, and we examine the performance of partial orderings and indices of inequality in this respect. For relative inequality and all currently documented intermediate inequality concepts, the orderings fail our consistency requirement, as do all indices which respect these orderings. However, the absolute inequality partial ordering satisfies consistency. We identify two classes of indices of absolute inequality, one containing rank-independent and the other rank-dependent indices, which measure attainment and shortfall inequality consistently (in fact identically). The only subgroup decomposable inequality index, of any type, which measures attainment and shortfall inequality consistently is the variance. We discuss implications for the study of pure health inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 30 (2011)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505560
Achievement inequality Shortfall inequality Consistency;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Erreygers, Guido, 2009. "Can a single indicator measure both attainment and shortfall inequality?," Journal of Health Economics, Elsevier, vol. 28(4), pages 885-893, July.
- Buhong Zheng, 2007. "Unit-Consistent Decomposable Inequality Measures," Economica, London School of Economics and Political Science, vol. 74(293), pages 97-111, 02.
- Wagstaff, Adam, 2009. "Correcting the concentration index: A comment," Journal of Health Economics, Elsevier, vol. 28(2), pages 516-520, March.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
- ERREYGERS, Guido, 2006.
"Correcting the Concentration Index,"
2006027, University of Antwerp, Faculty of Applied Economics.
- ERREYGERS, Guido & CLARKE, Philip & VAN OURTI, Tom, 2010. "Mirror, mirror, on the wall, who in this land is fairest of all? Revisiting the extended concentration index," Working Papers 2010015, University of Antwerp, Faculty of Applied Economics.
- Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
- Erreygers, Guido, 2009. "Correcting the Concentration Index: A reply to Wagstaff," Journal of Health Economics, Elsevier, vol. 28(2), pages 521-524, March.
- Pfingsten, Andreas, 1986. "Distributionally-neutral tax changes for different inequality concepts," Journal of Public Economics, Elsevier, vol. 30(3), pages 385-393, August.
- Tateo Yoshida, 2005. "Social welfare rankings of income distributions A new parametric concept of intermediate inequality," Social Choice and Welfare, Springer, vol. 24(3), pages 557-574, 06.
- Shorrocks, Anthony F & Foster, James E, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 485-97, July.
- Besley, Timothy J & Preston, I P, 1988. "Invariance and the Axiomatics of Income Tax Progression: A Comment," Bulletin of Economic Research, Wiley Blackwell, vol. 40(2), pages 159-63, April.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
- Clarke, Philip M. & Gerdtham, Ulf-G. & Johannesson, Magnus & Bingefors, Kerstin & Smith, Len, 2002. "On the measurement of relative and absolute income-related health inequality," Social Science & Medicine, Elsevier, vol. 55(11), pages 1923-1928, December.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Bleichrodt, Han & van Doorslaer, Eddy, 2006. "A welfare economics foundation for health inequality measurement," Journal of Health Economics, Elsevier, vol. 25(5), pages 945-957, September.
- Guido Erreygers & Tom Van Ourti, 2010.
"Measuring Socioeconomic Inequality in Health, Health Care and Health Financing by Means of Rank-Dependent Indices: A Recipe for Good Practice,"
Tinbergen Institute Discussion Papers
10-076/3, Tinbergen Institute.
- Erreygers, Guido & Van Ourti, Tom, 2011. "Measuring socioeconomic inequality in health, health care and health financing by means of rank-dependent indices: A recipe for good practice," Journal of Health Economics, Elsevier, vol. 30(4), pages 685-694, July.
- Allanson, Paul & Petrie, Dennis, 2012.
"Understanding the vertical equity judgements underpinning health inequality measures,"
SIRE Discussion Papers
2012-06, Scottish Institute for Research in Economics (SIRE).
- Paul Allanson & Dennis Petrie, 2012. "Understanding the vertical equity judgements underpinning health inequality measures," Dundee Discussion Papers in Economics 264, Economic Studies, University of Dundee.
- Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
- Casilda Lasso de la Vega & Oihana Aristondo, 2010.
"Proposing indicators to measure achievement and shortfall inequality consistently,"
Brooks World Poverty Institute Working Paper Series
12010, BWPI, The University of Manchester.
- Lasso de la Vega, Casilda & Aristondo, Oihana, 2012. "Proposing indicators to measure achievement and shortfall inequality consistently," Journal of Health Economics, Elsevier, vol. 31(4), pages 578-583.
- Paul Makdissi & Myra Yazbeck, 2012. "Avoiding Blinding to Health Status: A New Class of Health Achievement and Inequality Indices," Working Papers 1207E, University of Ottawa, Department of Economics.
- Makdissi, Paul & Yazbeck, Myra, 2014.
"Measuring socioeconomic health inequalities in presence of multiple categorical information,"
Journal of Health Economics,
Elsevier, vol. 34(C), pages 84-95.
- Paul Makdissi & Myra Yazbeck, 2012. "Measuring Socioeconomic Health Inequalities in Presence of Multiple Categorical Information," Working Papers 1208E, University of Ottawa, Department of Economics.
- Satya R. Chakravarty & Nachiketa Chattopadhyay & Conchita D’Ambrosio, 2013. "On a family of achievement and shortfall inequality indices," Working Papers 300, ECINEQ, Society for the Study of Economic Inequality.
- Baeten, Steef & Van Ourti, Tom & van Doorslaer, Eddy, 2013.
"Rising inequalities in income and health in China: Who is left behind?,"
Journal of Health Economics,
Elsevier, vol. 32(6), pages 1214-1229.
- Steef Baeten & Tom Van Ourti & Eddy Van Doorslaer, 2012. "Rising Inequalities in Income and Health in China: Who is left behind?," Tinbergen Institute Discussion Papers 12-091/V, Tinbergen Institute.
- Kjellsson, Gustav & Gerdtham, Ulf-G., 2013. "Lost in Translation: Rethinking the Inequality-Equivalence Criteria for Bounded Health Variables," Working Papers 2013:18, Lund University, Department of Economics, revised 02 Jan 2014.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.