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Income Inequality and Health: Do the Equivalence Scales Matter?

  • Marta Pascual
  • David Cantarero
  • José Sarabia

The aim of this paper is to explore the relationship between income inequality and health in the European Union countries using new data from the European Community Household Panel (ECHP). The heterogeneity of the households has been approached using different equivalence scales. A variety of different model specifications were tried using different dependent variables such as life expectancy at birth and child mortality. The results give support to the influence of income inequality on health indicators using aggregate data and panel techniques, and show the sensitivity of the Gini index to the equivalence scale considered. Copyright International Atlantic Economic Society 2005

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File URL: http://hdl.handle.net/10.1007/s11293-005-3769-7
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Article provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.

Volume (Year): 33 (2005)
Issue (Month): 2 (June)
Pages: 169-178

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Handle: RePEc:kap:atlecj:v:33:y:2005:i:2:p:169-178
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  1. Gravelle, Hugh & Wildman, John & Sutton, Matthew, 2002. "Income, income inequality and health: what can we learn from aggregate data?," Social Science & Medicine, Elsevier, vol. 54(4), pages 577-589, February.
  2. Waldmann, Robert J, 1992. "Income Distribution and Infant Mortality," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1283-302, November.
  3. Wildman, John, 2003. "Modelling health, income and income inequality: the impact of income inequality on health and health inequality," Journal of Health Economics, Elsevier, vol. 22(4), pages 521-538, July.
  4. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  5. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
  6. Jones, Andrew M., 2000. "Health econometrics," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 6, pages 265-344 Elsevier.
  7. John Wildman & Hugh Gravelle & Matthew Sutton, 2003. "Health and income inequality: attempting to avoid the aggregation problem," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 999-1004.
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