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Proposing indicators to measure achievement and shortfall inequality consistently

Author

Listed:
  • Casilda Lasso de la Vega
  • Oihana Aristondo

Abstract

In several economic fields, such as those related to health or education, the individuals’ characteristics are measured by bounded variables. Accordingly, these characteristics may be indistinctly represented by achievements or shortfalls. A difficulty arises when inequality needs to be assessed. One may focus either on achievements or on shortfalls, but the respective inequality rankings may lead to contradictory results. In this note, we propose a procedure to define indicators to measure consistently the achievement and shortfall inequality. Specifically, we derive measures which are invariant under ratio-scale or translation transformations, and a decomposable measure also is proposed.

Suggested Citation

  • Casilda Lasso de la Vega & Oihana Aristondo, 2010. "Proposing indicators to measure achievement and shortfall inequality consistently," Global Development Institute Working Paper Series 12010, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:12010
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    Cited by:

    1. Inaki Permanyer & Suman Seth & Gaston Yalonetzky, 2025. "Inequality Measurement for Bounded Variables," Health Economics, John Wiley & Sons, Ltd., vol. 34(8), pages 1443-1460, August.
    2. Kjellsson, Gustav, 2014. "Extending Decomposition Analysis to Account for Socioeconomic Background: Income-Related Smoking Inequality among Swedish Women," Working Papers 2014:29, Lund University, Department of Economics.
    3. 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.
    4. Satya R. Chakravarty & Nachiketa Chattopadhyay & Conchita D'Ambrosio, 2016. "On a Family of Achievement and Shortfall Inequality Indices," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1503-1513, December.
    5. Gaston Yalonetzky, 2020. "Inequality of ratios," METRON, Springer;Sapienza Università di Roma, vol. 78(2), pages 193-217, August.
    6. Oihana Aristondo & Francisco J. Goerlich Gisbert & Casilda Lasso De La Vega, 2015. "A Proposal to Compare Consistently the Inequality Among the Poor," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 561-572, September.
    7. Suman Seth & Gaston Yalonetzky, 2016. "Has the world converged? A robust analysis of non-monetary bounded indicators," Working Papers 398, ECINEQ, Society for the Study of Economic Inequality.
    8. Sam Harper & Eric Ruder & Henry A. Roman & Amelia Geggel & Onyemaechi Nweke & Devon Payne-Sturges & Jonathan I. Levy, 2013. "Using Inequality Measures to Incorporate Environmental Justice into Regulatory Analyses," IJERPH, MDPI, vol. 10(9), pages 1-21, August.
    9. Nanak Kakwani & Hyun H. Son, 2015. "Income inequality and social well-being," Working Papers 380, ECINEQ, Society for the Study of Economic Inequality.
    10. Mohammad Abu‐Zaineh & Ramses H. Abul Naga, 2023. "Bread and Social Justice: Measurement of Social Welfare and Inequality Using Anthropometrics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 265-288, June.
    11. Kristof Bosmans, 2016. "Consistent Comparisons of Attainment and Shortfall Inequality: A Critical Examination," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1425-1432, November.
    12. Gustav Kjellsson & Ulf-G. Gerdtham, 2013. "Lost in Translation: Rethinking the Inequality Equivalence Criteria for Bounded Health Variables," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 3-32, Emerald Group Publishing Limited.
    13. Iñaki Permanyer, 2016. "Measuring Achievement and Shortfall Improvements in a Consistent Way," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 758-774, December.
    14. Yalonetzky, Gaston, 2022. "Consistent and inconsistent inequality indices for ordinal variables," Economics Letters, Elsevier, vol. 219(C).

    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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