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On correcting the concentration index for binary variables

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  • Kjellsson, Gustav
  • Gerdtham, Ulf-G.

Abstract

This article discusses measurement of socioeconomic inequalities in the prevalence of a health condition, in response to the recent exchange between Guido Erreygers and Adam Wagstaff, in which they discuss the merits of their own corrections to the frequently used concentration index. We first reconcile their debate and discuss the value judgments implicit in their indices. Next, we provide a formal definition of the previously undefined value judgment in Wagstaff's correction. Finally, we show empirically that the choice of index matters, as illustrated by comparisons between countries using data from the European Survey of Health, Ageing and Retirement.

Suggested Citation

  • Kjellsson, Gustav & Gerdtham, Ulf-G., 2013. "On correcting the concentration index for binary variables," Journal of Health Economics, Elsevier, vol. 32(3), pages 659-670.
  • Handle: RePEc:eee:jhecon:v:32:y:2013:i:3:p:659-670
    DOI: 10.1016/j.jhealeco.2012.10.012
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    References listed on IDEAS

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    1. Adam Wagstaff, 2011. "The concentration index of a binary outcome revisited," Health Economics, John Wiley & Sons, Ltd., vol. 20(10), pages 1155-1160, October.
    2. Wagstaff, Adam, 2009. "Correcting the concentration index: A comment," Journal of Health Economics, Elsevier, vol. 28(2), pages 516-520, March.
    3. Lasso de la Vega, Casilda & Aristondo, Oihana, 2012. "Proposing indicators to measure achievement and shortfall inequality consistently," Journal of Health Economics, Elsevier, vol. 31(4), pages 578-583.
    4. Erreygers, Guido, 2009. "Correcting the Concentration Index: A reply to Wagstaff," Journal of Health Economics, Elsevier, vol. 28(2), pages 521-524, March.
    5. repec:dau:papers:123456789/10510 is not listed on IDEAS
    6. Erreygers, Guido & Van Ourti, Tom, 2011. "Measuring socioeconomic inequality in health, health care and health financing by means of rank-dependent indices: A recipe for good practice," Journal of Health Economics, Elsevier, vol. 30(4), pages 685-694, July.
    7. Udaya S Mishra & William Joe, 2010. "Socioeconomic Inequalities in Childhood Undernutrition in India An Application of the Corrected Concentration Index," Economics Bulletin, AccessEcon, vol. 30(1), pages 847-854.
    8. Paul Allanson & Dennis Petrie, 2013. "On The Choice Of Health Inequality Measure For The Longitudinal Analysis Of Income‐Related Health Inequalities," Health Economics, John Wiley & Sons, Ltd., vol. 22(3), pages 353-365, March.
    9. Hernández-Quevedo, Cristina & Jones, Andrew M. & López-Nicolás, Angel & Rice, Nigel, 2006. "Socioeconomic inequalities in health: A comparative longitudinal analysis using the European Community Household Panel," Social Science & Medicine, Elsevier, vol. 63(5), pages 1246-1261, September.
    10. 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.
    11. Erreygers, Guido, 2009. "Correcting the Concentration Index," Journal of Health Economics, Elsevier, vol. 28(2), pages 504-515, March.
    12. Guido Erreygers & Tom Van Ourti, 2011. "Putting the cart before the horse. A comment on Wagstaff on inequality measurement in the presence of binary variables," Health Economics, John Wiley & Sons, Ltd., vol. 20(10), pages 1161-1165, October.
    13. Kakwani, Nanak & Wagstaff, Adam & van Doorslaer, Eddy, 1997. "Socioeconomic inequalities in health: Measurement, computation, and statistical inference," Journal of Econometrics, Elsevier, vol. 77(1), pages 87-103, March.
    14. 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.
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    Citations

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    Cited by:

    1. Carrieri, Vincenzo & Wuebker, Ansgar, 2013. "Assessing inequalities in preventive care use in Europe," Health Policy, Elsevier, vol. 113(3), pages 247-257.
    2. Thomas Leoni, 2015. "Social Differences in Health Status and Use of the Health Care System," WIFO Monatsberichte (monthly reports), WIFO, vol. 88(8), pages 649-662, August.
    3. Merino Ventosa, María & Urbanos-Garrido, Rosa M.maria.merino.ven@gmail.com, 2016. "Disentangling effects of socioeconomic status on obesity: A cross-sectional study of the Spanish adult population," Economics & Human Biology, Elsevier, vol. 22(C), pages 216-224.
    4. Mosquera, Paola A. & San Sebastian, Miguel & Waenerlund, Anna-Karin & Ivarsson, Anneli & Weinehall, Lars & Gustafsson, Per E., 2016. "Income-related inequalities in cardiovascular disease from mid-life to old age in a Northern Swedish cohort: A decomposition analysis," Social Science & Medicine, Elsevier, vol. 149(C), pages 135-144.
    5. N. N., 2015. "WIFO-Monatsberichte, issue 8/2015," WIFO Monatsberichte (monthly reports), WIFO, vol. 88(8), August.
    6. Dennis Petrie & Kam Tang & D. Rao, 2015. "Measuring Health Inequality with Realization of Conditional Potential Life Years (RCPLY)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(1), pages 21-44, May.
    7. Guangming Lv & Yang Wang & Yongsheng Xu, 2015. "On a new class of measures for health inequality based on ordinal data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 465-477, September.
    8. France Weaver & Judite Goncalves & Valerie-Anne Ryser, 2015. "Socioeconomic inequalities in subjective well-being among the 50+: contributions of income and health," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 15011, Institut d'Economie et Econométrie, Université de Genève.
    9. Hansen, Fredrik & Anell, Anders & Gerdtham, Ulf-G & Lyttkens, Carl Hampus, 2013. "The Future of Health Economics: The Potential of Behavioral and Experimental Economics," Working Papers 2013:20, Lund University, Department of Economics.
    10. Calara, Paul Samuel & Gerdtham, Ulf-G & Petrie, Dennis, 2016. "The Dynamics of Income-Related Health Inequalities in Australia versus Great Britain," Working Papers 2016:20, Lund University, Department of Economics.
    11. Heckley, Gawain & Gerdtham, Ulf-G. & Kjellsson, Gustav, 2016. "A general method for decomposing the causes of socioeconomic inequality in health," Journal of Health Economics, Elsevier, vol. 48(C), pages 89-106.
    12. Heckley, Gawain & Nordin, Martin & Gerdtham, Ulf-G., 2018. "Could Easier Access to University Improve Health and Reduce Health Inequalities?," Working Papers 2018:5, Lund University, Department of Economics.
    13. Kjellsson, Gustav & Gerdtham, Ulf-G., 2013. "Lost in Translation: Rethinking the Inequality-Equivalence Criteria for Bounded Health Variables," Working Papers 2013:18, Lund University, Department of Economics, revised 02 Jan 2014.
    14. Walsh, Brendan & Cullinan, John, 2015. "Decomposing socioeconomic inequalities in childhood obesity: Evidence from Ireland," Economics & Human Biology, Elsevier, vol. 16(C), pages 60-72.

    More about this item

    Keywords

    Health inequality; Socioeconomic inequality; Concentration index; Binary variables;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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