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Abstract

Abstract This paper uses sequential stochastic dominance procedures to compare the joint distribution of health and income across space and time. It is the first application of which we are aware of methods to compare multidimensional distributions of income and health using procedures that are robust to aggregation techniques. The paper's approach is more general than comparisons of health gradients and does not require the estimation of health equivalent incomes. We illustrate the approach by contrasting Canada and the US using comparable data. Canada dominates the US over the bottom part of the bi-dimensional distribution of health and income, though not generally over the uni-dimensional distributions of health or income. The paper also finds that welfare for both Canadians and Americans has not unambiguously improved during the last decade over the joint distribution of income and health, in spite of the fact that the uni-dimensional distributions of income have clearly improved during that period.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 30 (2011)
Issue (Month): 2 (March)
Pages: 293-302

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Handle: RePEc:eee:jhecon:v:30:y:2011:i:2:p:293-302

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Web page: http://www.elsevier.com/locate/inca/505560

Related research

Keywords: Health inequality Self-reported health status Income distribution Stochastic dominance Social welfare;

Other versions of this item:

Find related papers by JEL classification:

• I10 - Health, Education, and Welfare - - Health - - - General
• I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
• I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
• D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
• D30 - Microeconomics - - Distribution - - - General
• H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

References

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   • Deaton, Angus S & Paxson, Christina H, 1998. "Aging and Inequality in Income and Health," American Economic Review, American Economic Association, vol. 88(2), pages 248-53, May.
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Cited by:

1. FLEURBAEY, Marc & SCHOKKAERT, Erik, 2011. "Equity in health and health care," CORE Discussion Papers 2011026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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