On the consistent measurement of attainment and shortfall inequality
In measuring inequality of a bounded variable such as health status, one can focus on attainments or shortfalls. However, rankings of social states by attainment and shortfall inequality do not necessarily mirror one another. We propose a requirement, that attainment inequality and shortfall inequality be measured consistently, and we examine the performance of partial orderings and indices of inequality in this respect. For relative inequality and all currently documented intermediate inequality concepts, the orderings fail our consistency requirement, as do all indices which respect these orderings. However, the absolute inequality partial ordering satisfies consistency. We identify two classes of indices of absolute inequality, one containing rank-independent and the other rank-dependent indices, which measure attainment and shortfall inequality consistently (in fact identically). The only subgroup decomposable inequality index, of any type, which measures attainment and shortfall inequality consistently is the variance. We discuss implications for the study of pure health inequality.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
- Besley, Timothy J & Preston, I P, 1988. "Invariance and the Axiomatics of Income Tax Progression: A Comment," Bulletin of Economic Research, Wiley Blackwell, vol. 40(2), pages 159-63, April.
- Pfingsten, Andreas, 1986. "Distributionally-neutral tax changes for different inequality concepts," Journal of Public Economics, Elsevier, vol. 30(3), pages 385-393, August.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
- Erreygers, Guido, 2009.
"Correcting the Concentration Index,"
Journal of Health Economics,
Elsevier, vol. 28(2), pages 504-515, March.
- Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
- Erreygers, Guido, 2009. "Correcting the Concentration Index: A reply to Wagstaff," Journal of Health Economics, Elsevier, vol. 28(2), pages 521-524, March.
- Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 485-497.
- 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.
- Wagstaff, Adam, 2009. "Correcting the concentration index: A comment," Journal of Health Economics, Elsevier, vol. 28(2), pages 516-520, March.
- Buhong Zheng, 2007. "Unit-Consistent Decomposable Inequality Measures," Economica, London School of Economics and Political Science, vol. 74(293), pages 97-111, 02.
- Tateo Yoshida, 2005. "Social welfare rankings of income distributions A new parametric concept of intermediate inequality," Social Choice and Welfare, Springer, vol. 24(3), pages 557-574, 06.
- Erreygers, Guido, 2009. "Can a single indicator measure both attainment and shortfall inequality?," Journal of Health Economics, Elsevier, vol. 28(4), pages 885-893, July.
- ERREYGERS, Guido & CLARKE, Philip & VAN OURTI, Tom, 2010. "Mirror, mirror, on the wall, who in this land is fairest of all? Revisiting the extended concentration index," Working Papers 2010015, University of Antwerp, Faculty of Applied Economics.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:30:y:2011:i:1:p:214-219. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.