A modified Kakwani measure for health inequality
We propose simple modifications for the Kakwani tax progressivity measure that make it suitable for evaluating access inequality for medical services. Our modification is to measure inequality using the ratio of the concentration index to the Gini coefficient instead of the difference between them. We also propose a measure using the Gini coefficient or concentration index of consumption expenditure as the denominator in the modified measure as an alternative type of modified measure. This measure can also be interpreted as the income/consumption expenditure elasticity evaluated at the mean. Additionally, we propose a decomposition method using expenditure components and provide an empirical example with Japanese data. Copyright Fukushige et al.; licensee Springer. 2012
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Volume (Year): 2 (2012)
Issue (Month): 1 (December)
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- 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.
- Clarke, Philip & Van Ourti, Tom, 2010. "Calculating the concentration index when income is grouped," Journal of Health Economics, Elsevier, vol. 29(1), pages 151-157, January.
- Fukushige, Mototsugu, 1989. "A new approach to the economic inequality based upon the permanent income hypothesis," Economics Letters, Elsevier, vol. 29(2), pages 183-187.
- JØrgen Lauridsen & Terkel Christiansen & Jens Gundgaard & Unto Häkkinen & Harri Sintonen, 2007. "Decomposition of health inequality by determinants and dimensions," Health Economics, John Wiley & Sons, Ltd., vol. 16(1), pages 97-102.
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- Gerdtham, U. -G. & Johannesson, M. & Lundberg, L. & Isacson, D., 1999. "A note on validating Wagstaff and van Doorslaer's health measure in the analysis of inequalities in health," Journal of Health Economics, Elsevier, vol. 18(1), pages 117-124, January.
- M. Kamrul Islam & Ulf-G. Gerdtham & Philip Clarke & Kristina Burström, 2010. "Does income-related health inequality change as the population ages? Evidence from Swedish panel data," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 334-349.
- Van Ourti, Tom & van Doorslaer, Eddy & Koolman, Xander, 2009. "The effect of income growth and inequality on health inequality: Theory and empirical evidence from the European Panel," Journal of Health Economics, Elsevier, vol. 28(3), pages 525-539, May.
- Bilger, Marcel, 2008. "Progressivity, horizontal inequality and reranking caused by health system financing: A decomposition analysis for Switzerland," Journal of Health Economics, Elsevier, vol. 27(6), pages 1582-1593, December.
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"Correcting the Concentration Index,"
Journal of Health Economics,
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- Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
- Hai Zhong, 2009. "Extensions to decomposition of the redistributive effect of health care finance," Health Economics, John Wiley & Sons, Ltd., vol. 18(10), pages 1176-1187.
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