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Correcting the Concentration Index

  • Erreygers, Guido

In recent years attention has been drawn to several shortcomings of the Concentration Index, a frequently used indicator of the socioeconomic inequality of health. Some modifications have been suggested, but these are only partial remedies. This paper proposes a corrected version of the Concentration Index which is superior to the original Concentration Index and its variants, in the sense that it is a rank-dependent indicator which satisfies four key requirements (transfer, level independence, cardinal invariance, and mirror). The paper also shows how the corrected Concentration Index can be decomposed and generalized.

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Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 28 (2009)
Issue (Month): 2 (March)
Pages: 504-515

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Handle: RePEc:eee:jhecon:v:28:y:2009:i:2:p:504-515
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505560

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  1. Adam Wagstaff, 2005. "The bounds of the concentration index when the variable of interest is binary, with an application to immunization inequality," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 429-432.
  2. Zheng, Buhong, 1994. "Can a Poverty Index Be Both Relative and Absolute?," Econometrica, Econometric Society, vol. 62(6), pages 1453-58, November.
  3. Gastwirth, Joseph L, 1972. "The Estimation of the Lorenz Curve and Gini Index," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 306-16, August.
  4. ERREYGERS, Guido, 2006. "Beyond the Health Concentration Index: An Atkinson alternative for the measurement of the socioeconomic inequality of health," Working Papers 2006029, University of Antwerp, Faculty of Applied Economics.
  5. Wagstaff, Adam, 2002. "Inequality aversion, health inequalities and health achievement," Journal of Health Economics, Elsevier, vol. 21(4), pages 627-641, July.
  6. Wagstaff, Adam & Van Doorslaer, Eddy & Watanabe, Naoko, 2001. "On decomposing the causes of health sector inequalities with an application to malnutrition inequalities in Vietnam," Policy Research Working Paper Series 2714, The World Bank.
  7. Clarke, Philip M. & Gerdtham, Ulf-G. & Johannesson, Magnus & Bingefors, Kerstin & Smith, Len, 2002. "On the measurement of relative and absolute income-related health inequality," Social Science & Medicine, Elsevier, vol. 55(11), pages 1923-1928, December.
  8. Wagstaff, Adam & Watanabe, Naoko, 2000. "Socioeconomic inequalities in child malnutrition in the developing world," Policy Research Working Paper Series 2434, The World Bank.
  9. Bleichrodt, Han & van Doorslaer, Eddy, 2006. "A welfare economics foundation for health inequality measurement," Journal of Health Economics, Elsevier, vol. 25(5), pages 945-957, September.
  10. Wagstaff, Adam & Paci, Pierella & van Doorslaer, Eddy, 1991. "On the measurement of inequalities in health," Social Science & Medicine, Elsevier, vol. 33(5), pages 545-557, January.
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