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Circumstances and Efforts: How important is their correlation for the measurement of inequality of opportunity in health?

  • Trannoy, Alain
  • Tubeuf, Sandy
  • Jusot, Florence

The way to treat the correlation between circumstances and effort is a central, yet largely neglected issue in the applied literature on inequality of opportunity. This paper adopts three alternative normative ways of treating this correlation championed by Roemer, Barry and Swift and assesses their empirical relevance using survey data. We combine regression analysis with the natural decomposition of the variance to compare the relative contributions of circumstances and efforts to overall health inequality according to the different normative principles. Our results suggest that, in practice, the normative principle on the way to treat the correlation between circumstances and effort makes little difference on the relative contributions of circumstances and efforts to explained health inequality.

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File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/5065/1/jusot_tubeuf.PDF
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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/5065.

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Date of creation: Dec 2013
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Publication status: Published in Health Economics, 2013, Vol. 22, no. 12. pp. 1470-1495.Length: 25 pages
Handle: RePEc:dau:papers:123456789/5065
Contact details of provider: Web page: http://www.dauphine.fr/en/welcome.html

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  8. Alain Trannoy & Sandy Tubeuf & Florence Jusot & Marion Devaux, 2010. "Inequality of opportunities in health in France: a first pass," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 921-938, August.
  9. Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987. "Generalised residuals," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 5-32.
  10. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591, March.
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  13. Teresa Bago d'Uva & Eddy Van Doorslaer & Maarten Lindeboom & Owen O'Donnell, 2008. "Does reporting heterogeneity bias the measurement of health disparities?," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 351-375.
  14. Pedro Rosa Dias, 2010. "Modelling opportunity in health under partial observability of circumstances," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 252-264.
  15. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  16. Sermet, Catherine & Tubeuf, Sandy & Devaux, Marion & Jusot, Florence, 2008. "Hétérogénéité sociale de déclaration de l’état de santé et mesure des inégalités de santé," Economics Papers from University Paris Dauphine 123456789/423, Paris Dauphine University.
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