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Accounting for risk factors on health outcomes: The case of Luxembourg

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  • Mussard, Stéphane
  • Pi Alperin, María Noel

Abstract

This paper proposes a two-parameter family of health indicators. First, these operational research indicators are axiomatically derived and allow a Boolean risk factor to be linked to different health dimensions. Second, the behavior of the social planner with respect to the risk factor (risk insensibility, risk sensibility and extreme risk sensibility) is introduced. We demonstrate that these indicators are consistent with a stochastic dominance rule, which is an operational research rule for decision making. Using data from the Survey of Health, Ageing and Retirement in Europe, we show that, among the different childhood circumstances of individuals having an impact on the health status in adulthood, having parents with a migration background and low educated constitutes the risk factors that aggravate the most the overall level of socio-economic health inequality in Luxembourg.

Suggested Citation

  • Mussard, Stéphane & Pi Alperin, María Noel, 2021. "Accounting for risk factors on health outcomes: The case of Luxembourg," European Journal of Operational Research, Elsevier, vol. 291(3), pages 1180-1197.
    • Handle: RePEc:eee:ejores:v:291:y:2021:i:3:p:1180-1197
    DOI: 10.1016/j.ejor.2020.09.040
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    Cited by:

    1. Ibrahima Faro & Paul Makdissi & Stéphane Mussard, 2026. "Solving the Problem of Socially-Improving Multivariate Tax Reform with s-order Stochastic Dominance: An Application to Egyptian Consumption," Working Papers 2604E, University of Ottawa, Department of Economics.
    2. Vincenzo Carrieri & Apostolos Davillas & Andrew M. Jones, 2020. "A latent class approach to inequity in health using biomarker data," Health Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 808-826, July.
    3. Mohamad A. Khaled & Paul Makdissi & Myra Yazbeck, 2023. "On absolute socioeconomic health inequality comparisons," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(1), pages 5-25, February.
    4. Louis Eeckhoudt & Elisa Pagani & Eugenio Peluso, 2023. "Multidimensional risk aversion: the cardinal sin," Annals of Operations Research, Springer, vol. 320(1), pages 15-31, January.
    5. Davillas, Apostolos & Jones, Andrew M, 2020. "Ex ante inequality of opportunity in health, decomposition and distributional analysis of biomarkers," Journal of Health Economics, Elsevier, vol. 69(C).

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