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Incorporating Inequality Aversion in Health-Care Priority Setting

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  • Costa-Font, J.;
  • Cowell, F.;

Abstract

Although measures of sensitivity to inequality are important in judging the welfare effects of health-care programmes, it is far from straightforward how to elicit them and apply them in health-care decision making. This paper provides an overview of the literature on the measurement of inequality aversion, examines some of the features specific of the health domain that depart from the income domain, and discusses its implementation in health system priority-setting decisions. We find evidence that individuals exhibit a preference for more equitable health distribution, but inequality aversion estimates from the literature are unclear. Unlike the income-inequality literature, standard approaches in the health-economics do not follow a ‘veil-of-ignorance’ approach and elicit mostly bivariate (income-related health) inequality aversion estimates. We suggest some ideas to reduce the disconnect between the income-inequality and health-economics literatures.

Suggested Citation

  • Costa-Font, J.; & Cowell, F.;, 2019. "Incorporating Inequality Aversion in Health-Care Priority Setting," Health, Econometrics and Data Group (HEDG) Working Papers 19/04, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:19/04
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    Cited by:

    1. Asaria, Miqdad & Costa-Font, Joan & Cowell, Frank A., 2021. "How Does Exposure to COVID-19 Influence Health and Income Inequality Aversion?," IZA Discussion Papers 14103, Institute of Labor Economics (IZA).
    2. Stanislaw Maciej Kot & Piotr Paradowski, 2022. "The Atlas of Inequality Aversion: Theory and Empirical Evidence from the Luxembourg Income Study Database," LIS Working papers 826, LIS Cross-National Data Center in Luxembourg.
    3. Hurley, Jeremiah & Mentzakis, Emmanouil & Walli-Attaei, Marjan, 2020. "Inequality aversion in income, health, and income-related health," Journal of Health Economics, Elsevier, vol. 70(C).
    4. Simon McNamara & John Holmes & Abigail K. Stevely & Aki Tsuchiya, 2020. "How averse are the UK general public to inequalities in health between socioeconomic groups? A systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(2), pages 275-285, March.

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    More about this item

    Keywords

    attitudes to inequality; inequality aversion; health; income; survey data; priority setting;
    All these keywords.

    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other

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