Proposing indicators to measure achievement and shortfall inequality consistently
AbstractIn several economic fields, such as those related to health or education, the individuals’ characteristics are measured by bounded variables. Accordingly, these characteristics may be indistinctly represented by achievements or shortfalls. A difficulty arises when inequality needs to be assessed. One may focus either on achievements or on shortfalls but the respective inequality rankings may lead to contradictory results. In this note we propose a procedure to define indicators that measure equally the achievement and shortfall inequality. Specifically, we derive measures which are invariant under ratio-scale or translation transformations, and a decomposable measure is also obtained. As the indicators proposed depend on the distribution bounds, families of indices that guarantee the same inequality rankings regardless of the distribution maximal levels are identified.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 31 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/inca/505560
Inequality measurement; Health inequality; Achievements; Shortfalls;
Other versions of this item:
- 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.
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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