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Measuring the Inequality of Bounded Distributions: A Joint Analysis of Attainments and Shortfalls

In: Health and Inequality

Author

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  • Oihana Aristondo
  • Casilda Lasso de la Vega

Abstract

When health is measured by a bounded variable, differences in health can be presented as levels of attainment or shortfall. Measurement of heath inequality then usually involves the choice of either the attainment or the shortfall distribution, and this choice may affect comparisons of inequality across populations. A number of indices have been introduced to overcome this problem. This chapter proposes a framework in which attainment and shortfall distributions can be jointly analyzed. Joint distributions of attainments and shortfalls are defined from points of view consistent with concerns for relative, absolute or intermediate inequality. Inequality measures invariant according to the corresponding ethical criterion are then applied. A dominance criterion that guarantees unanimous rankings of the joint distributions is also proposed.

Suggested Citation

  • Oihana Aristondo & Casilda Lasso de la Vega, 2013. "Measuring the Inequality of Bounded Distributions: A Joint Analysis of Attainments and Shortfalls," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 33-52, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(2013)0000021003
    DOI: 10.1108/S1049-2585(2013)0000021003
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    More about this item

    Keywords

    Inequality measurement; health inequality; bounded variables; Lorenz curves; I30; D63;
    All these keywords.

    JEL classification:

    • 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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