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Progressivity of health care financing : estimation and statistical inference

Author

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  • Jan Klavus

    (STAKES, National Research and Development Centre for Welfare and Health, Finland)

Abstract

This paper examines the vertical distribution of health care financing in Finland. The empirical analysis is based on a new approach that allows the estimation of inequality indices from micro-level data, and testing for the statistical significance of differences in the distributions. Estimates of standard errors were computed for the Gini coefficient of gross income and for concentration and progressivity indices of various health care financing sources. The results suggest that overall health care financing in Finland in the early 1990s was distributed progressively: poorer households financed health care by a smaller proportion of their gross income than richer households. However; the level of progressivity of various financing sources differed, and in most cases the differences were sufficiently large to rank the various financing components according to their contribution to overall progressivity.

Suggested Citation

  • Jan Klavus, 1998. "Progressivity of health care financing : estimation and statistical inference," Finnish Economic Papers, Finnish Economic Association, vol. 11(2), pages 86-95, Autumn.
  • Handle: RePEc:fep:journl:v:11:y:1998:i:2:p:86-95
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    References listed on IDEAS

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    1. Doorslaer, Eddy van & Wagstaff, Adam & Rutten, Frans (ed.), 1992. "Equity in the Finance and Delivery of Health Care: An International Perspective," OUP Catalogue, Oxford University Press, number 9780192622914.
    2. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
    3. Aronson, J Richard & Johnson, Paul & Lambert, Peter J, 1994. "Redistributive Effects and Unequal Income Tax Treatment," Economic Journal, Royal Economic Society, vol. 104(423), pages 262-270, March.
    4. O'Higgins, Michael & Schmaus, Guenther & Stephenson, Geoffrey, 1989. "Income Distribution and Redistribution: A Microdata Analysis for Seven Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(2), pages 107-131, June.
    5. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September.
    6. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-375, December.
    7. 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.
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    Cited by:

    1. Klavus, Jan, 2001. "Statistical inference of progressivity dominance: an application to health care financing distributions," Journal of Health Economics, Elsevier, vol. 20(3), pages 363-377, May.
    2. Jan Klavus, 1999. "Health care and economic well-being: estimating equivalence scales for public health care utilization," Health Economics, John Wiley & Sons, Ltd., vol. 8(7), pages 613-625.

    More about this item

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • I19 - Health, Education, and Welfare - - Health - - - Other

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