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Ordinal and Cardinal Measures of Health Inequality - An Empirical Comparison

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  • David Madden

    (University College of Dublin)

Abstract

When measuring health inequality using ordinal data, analysts typically must choose between indices specifically based upon ordinal data and more standard indices using ordinal data which has been transformed into cardinal data. This paper compares inequality rankings across a number of different approaches and finds considerable sensitivity to the choice between ordinal and cardinal based indices. There is relatively little sensitivity to the ethical choices made by the analyst in terms of the weight attached to different parts of the distribution.

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File URL: http://www.ucd.ie/economics/research/papers/2008/WP08.13.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 200813.

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Length: 11 pages
Date of creation: 05 May 2008
Date of revision:
Handle: RePEc:ucn:wpaper:200813

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Keywords: Inequality; cardinal; ordinal;

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  1. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
  2. Benedicte Apouey, 2007. "Measuring health polarization with self-assessed health data," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 875-894.
  3. Abul Naga, Ramses H. & Yalcin, Tarik, 2008. "Inequality measurement for ordered response health data," Journal of Health Economics, Elsevier, vol. 27(6), pages 1614-1625, December.
  4. Eddy van Doorslaer & Xander Koolman, 2004. "Explaining the differences in income-related health inequalities across European countries," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 609-628.
  5. Jorgen Lauridsen & Terkel Christiansen & Unto Häkkinen, 2004. "Measuring inequality in self-reported health-discussion of a recently suggested approach using Finnish data," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 725-732.
  6. Tom Van Ourti & Eddy Van Doorslaer & Xander Koolman, 2006. "The Effect of Growth and Inequality in Incomes on Health Inequality: Theory and Empirical Evidence from the European Panel," Tinbergen Institute Discussion Papers 06-108/3, Tinbergen Institute.
  7. Deirdre N. McCloskey & Stephen T. Ziliak, 1996. "The Standard Error of Regressions," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 97-114, March.
  8. Doorslaer, Eddy van & Jones, Andrew M., 2003. "Inequalities in self-reported health: validation of a new approach to measurement," Journal of Health Economics, Elsevier, vol. 22(1), pages 61-87, January.
  9. Ann Lecluyse & Irina Cleemput, 2006. "Making health continuous: implications of different methods on the measurement of inequality," Health Economics, John Wiley & Sons, Ltd., vol. 15(1), pages 99-104.
  10. Nolan, Brian & Gannon, Brenda & Layte, Richard & Watson, Dorothy & Whelan, Christopher T. & Williams, James, 2002. "Monitoring Poverty Trends in Ireland: Results from the 2000 Living in Ireland survey," Research Series, Economic and Social Research Institute (ESRI), number PRS45, September.
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Cited by:
  1. Chrysanthi Hatzimasoura & Christopher J. Bennett, 2011. "Poverty Measurement with Ordinal Data," Working Papers 2011-14, The George Washington University, Institute for International Economic Policy.
  2. David Madden, 2011. "The Impact of an Economic Boom on the Level and Distribution of Subjective Well-Being: Ireland, 1994–2001," Journal of Happiness Studies, Springer, vol. 12(4), pages 667-679, August.
  3. Fredrik Ødegaard & Pontus Roos, 2013. "Measuring Worksite Health Promotion Programs: an application of Structural Equation Modeling with ordinal data," The European Journal of Health Economics, Springer, vol. 14(4), pages 639-653, August.
  4. Sonne-Schmidt, Christoffer & Tarp, Finn & Osterdal, Lars Peter, 2013. "Ordinal multidimensional inequality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Madden, D.;, 2013. "Health and Wealth on the Roller-Coaster: Ireland, 2003-2011," Health, Econometrics and Data Group (HEDG) Working Papers 13/11, HEDG, c/o Department of Economics, University of York.
  6. Jones, Andrew M. & Rice, Nigel & Robone, Silvana & Dias, Pedro Rosa, 2011. "Inequality and polarisation in health systems' responsiveness: A cross-country analysis," Journal of Health Economics, Elsevier, vol. 30(4), pages 616-625, July.
  7. 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.

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