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Calculating concentration index with repetitive values of indicators of economic welfare

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  • Chen, Zhuo
  • Roy, Kakoli

Abstract

Repetitive values of the ranking indicators of economic welfare are often introduced due to incidental ties or censoring in the welfare variable, or the categorical nature of welfare variables used in numerous national surveys. In calculating concentration index (CI), assigning different fractional ranks to observations that have same values of the welfare measure leads to unstable and inconsistent CI estimates when the welfare variable is categorical or censored. In this paper, we establish an interval within which the CI estimates lie, and propose a solution, which is an extension of (Kakwani, N.C., Wagstaff, A., van Doorslaer, E., 1997. Socioeconomic inequalities in health: measurement, computation, and statistical inference. Journal of Econometrics 77, 87-103), for consistent and replicable estimates of CI when there are a substantial number of ties of the welfare indicator.

Suggested Citation

  • Chen, Zhuo & Roy, Kakoli, 2009. "Calculating concentration index with repetitive values of indicators of economic welfare," Journal of Health Economics, Elsevier, vol. 28(1), pages 169-175, January.
  • Handle: RePEc:eee:jhecon:v:28:y:2009:i:1:p:169-175
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    References listed on IDEAS

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    9. 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.
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    Cited by:

    1. Peter Konings & Sam Harper & John Lynch & Ahmad Hosseinpoor & Dirk Berkvens & Vincent Lorant & Andrea Geckova & Niko Speybroeck, 2010. "Analysis of socioeconomic health inequalities using the concentration index," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 55(1), pages 71-74, February.
    2. Clarke, Philip & Van Ourti, Tom, 2010. "Calculating the concentration index when income is grouped," Journal of Health Economics, Elsevier, vol. 29(1), pages 151-157, January.
    3. Ovrum, Arnstein & Rickertsen, Kyrre, 2011. "Inequality in Health Versus Inequality in Lifestyles," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114556, European Association of Agricultural Economists.
    4. Philip Clarke & Tom Van Ourti, 2009. "Correcting the Bias in the Concentration Index when Income is Grouped," CEPR Discussion Papers 599, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. Kankeu, Hyacinthe Tchewonpi & Ventelou, Bruno, 2016. "Socioeconomic inequalities in informal payments for health care: An assessment of the ‘Robin Hood’ hypothesis in 33 African countries," Social Science & Medicine, Elsevier, vol. 151(C), pages 173-186.
    6. Wagstaff, Adam & Bilger, Marcel & Buisman, Leander R. & Bredenkamp, Caryn, 2014. "Who benefits from government health spending and why? a global assessment," Policy Research Working Paper Series 7044, The World Bank.
    7. Walsh, Brendan & Cullinan, John, 2015. "Decomposing socioeconomic inequalities in childhood obesity: Evidence from Ireland," Economics & Human Biology, Elsevier, vol. 16(C), pages 60-72.

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