IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v13y2004i7p649-656.html
   My bibliography  Save this article

On the interpretation of a concentration index of inequality

Author

Listed:
  • Xander Koolman
  • Eddy van Doorslaer

Abstract

This paper aims to add a more intuitive understanding to the concept of a concentration index for measuring relative inequality with an application of health‐related measures by income. A new redistribution interpretation and an existing redistribution interpretation of the Gini are presented and applied to the concentration index. Both indicate the share of the total amount of any variable that needs redistributing in a particular way from rich to poor (or vice versa) to achieve a concentration index equal to zero. The characteristics of these redistribution schemes are compared. The paper also draws attention to the relationship between a concentration index, a correlation coefficient with relative income rank and a coefficient of variation of the variable of interest. These relationships are illustrated using data on inequality in dental care utilisation in European countries taken from the European Community Household Panel survey. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Xander Koolman & Eddy van Doorslaer, 2004. "On the interpretation of a concentration index of inequality," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 649-656, July.
  • Handle: RePEc:wly:hlthec:v:13:y:2004:i:7:p:649-656
    DOI: 10.1002/hec.884
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.884
    Download Restriction: no

    File URL: https://libkey.io/10.1002/hec.884?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wagstaff, Adam & Paci, Pierella & van Doorslaer, Eddy, 1991. "On the measurement of inequalities in health," Social Science & Medicine, Elsevier, vol. 33(5), pages 545-557, January.
    2. Kondor, Yaakov, 1971. "An Old-New Measure of Income Inequality," Econometrica, Econometric Society, vol. 39(6), pages 1041-1042, November.
    3. Wagstaff, Adam & van Doorslaer, Eddy & Paci, Pierella, 1989. "Equity in the Finance and Delivery of Health Care: Some Tentative Cross-country Comparisons," Oxford Review of Economic Policy, Oxford University Press, vol. 5(1), pages 89-112, Spring.
    4. Wagstaff, Adam & van Doorslaer, Eddy & van der Burg, Hattem & Calonge, Samuel & Christiansen, Terkel & Citoni, Guido & Gerdtham, Ulf-G & Gerfin, Mike & Gross, Lorna & Hakinnen, Unto, 1999. "Equity in the finance of health care: some further international comparisons1," Journal of Health Economics, Elsevier, vol. 18(3), pages 263-290, June.
    5. van Doorslaer, Eddy & Wagstaff, Adam & Bleichrodt, Han & Calonge, Samuel & Gerdtham, Ulf-G. & Gerfin, Michael & Geurts, Jose & Gross, Lorna & Hakkinen, Unto & Leu, Robert E., 1997. "Income-related inequalities in health: some international comparisons," Journal of Health Economics, Elsevier, vol. 16(1), pages 93-112, February.
    6. van Doorslaer, Eddy & Wagstaff, Adam & van der Burg, Hattem & Christiansen, Terkel & De Graeve, Diana & Duchesne, Inge & Gerdtham, Ulf-G & Gerfin, Michael & Geurts, Jose & Gross, Lorna, 2000. "Equity in the delivery of health care in Europe and the US," Journal of Health Economics, Elsevier, vol. 19(5), pages 553-583, September.
    7. Blackburn, McKinley L., 1989. "Interpreting the magnitude of changes in measures of income inequality," Journal of Econometrics, Elsevier, vol. 42(1), pages 21-25, September.
    8. Kondor, Yaakov, 1975. "Value Judgements Implied by the Use of Various Measures of Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 21(3), pages 309-321, September.
    9. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    10. Milanovic, Branko, 1997. "A simple way to calculate the Gini coefficient, and some implications," Economics Letters, Elsevier, vol. 56(1), pages 45-49, September.
    11. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Magnus Lindelow, 2006. "Sometimes more equal than others: how health inequalities depend on the choice of welfare indicator," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 263-279, March.
    2. Yasushi Ohkusa & Chika Honda, 2003. "Updated Horizontal Inequity in Health Care Utilization in Japan: Comparisons with OECD Countries Using an Original Survey," ISER Discussion Paper 0585, Institute of Social and Economic Research, Osaka University.
    3. Mohammad Hajizadeh & Luke Brian Connelly & James Robert Gerard Butler, 2014. "Health Policy and Equity of Health Care Financing in Australia: 1973–2010," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 298-322, June.
    4. Hai Zhong, 2010. "On decomposing the inequality and inequity change in health care utilization: change in means, or change in the distributions?," International Journal of Health Economics and Management, Springer, vol. 10(4), pages 369-386, December.
    5. I. Josa & A. Aguado, 2020. "Measuring Unidimensional Inequality: Practical Framework for the Choice of an Appropriate Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 541-570, June.
    6. Lindelow, Magnus, 2004. "Sometimes more equal than others : how health inequalities depend on the choice of welfare indicator," Policy Research Working Paper Series 3329, The World Bank.
    7. Hai Zhong, 2010. "The impact of missing data in the estimation of concentration index: a potential source of bias," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(3), pages 255-266, June.
    8. Richard Layte & Brian Nolan, 2004. "Equity in the Utilisation of Health Care in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 35(2), pages 111-134.
    9. Costa-Font, Joan & Hernández-Quevedo, Cristina & Jiménez-Rubio, Dolores, 2014. "Income inequalities in unhealthy life styles in England and Spain," Economics & Human Biology, Elsevier, vol. 13(C), pages 66-75.
    10. Cavagnero, Eleonora & Bilger, Marcel, 2010. "Equity during an economic crisis: Financing of the Argentine health system," Journal of Health Economics, Elsevier, vol. 29(4), pages 479-488, July.
    11. 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, March.
    12. Jones, Andrew M. & Rice, Nigel & Robone, Silvana & Dias, Pedro Rosa, 2011. "Inequality and polarisation in health systems' responsiveness: A cross-country analysis," Journal of Health Economics, Elsevier, vol. 30(4), pages 616-625, July.
    13. Lee, Miaw-Chwen & Jones, Andrew Michael, 2007. "Understanding differences in income-related health inequality between geographic regions in Taiwan using the SF-36," Health Policy, Elsevier, vol. 83(2-3), pages 186-195, October.
    14. M.D. Azharuddin Akhtar & Nadeem Ahmad & Indrani Roy Chowdhury, 2020. "Measuring Socio-Economic Inequality in Self-Reported Morbidity in India: Decomposition Analysis," Review of Development and Change, , vol. 25(1), pages 89-111, June.
    15. Unto Häkkinen, 2005. "The impact of changes in Finland's health care system," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages 101-118, September.
    16. Magnus Lindelow, 2002. "Sometimes More Equal than Others How the choice of welfare indicator can affect the measurement of health inequalities and the incidence of public spending," Economics Series Working Papers WPS/2002-15, University of Oxford, Department of Economics.
    17. E. Xie, 2011. "Income-related inequalities of health and health care utilization," Frontiers of Economics in China, Springer;Higher Education Press, vol. 6(1), pages 131-156, March.
    18. Doorslaer, Eddy van & Jones, Andrew M., 2003. "Inequalities in self-reported health: validation of a new approach to measurement," Journal of Health Economics, Elsevier, vol. 22(1), pages 61-87, January.
    19. Costa Font, Joan & Hernández-Quevedo, Cristina & McGuire, Alistair, 2011. "Persistence despite action? Measuring the patterns of health inequality in England (1997–2007)," Health Policy, Elsevier, vol. 103(2), pages 149-159.
    20. Mª Luz González Alvarez & Antonio Clavero Barranquero, 2008. "An analysis of income-related inequalities in the health care use by dynamic models," Hacienda Pública Española / Review of Public Economics, IEF, vol. 186(3), pages 9-42, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:13:y:2004:i:7:p:649-656. 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: . General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.