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11-06-2021 | Original Paper | Issue 4/2021

Social Choice and Welfare 4/2021

Making socioeconomic health inequality comparisons when health concentration curves intersect

Journal:
Social Choice and Welfare > Issue 4/2021
Authors:
Tzu-Ying Chen, Yi-Hsin Elsa Hsu, Rachel J. Huang, Larry Y. Tzeng
Important notes
This work was financially supported by the Center for Research in Econometric Theory and Applications [Grant 109L9002] from the Featured Areas Research Center Program within the framework of the Higher Education Sprout Project by the Ministry of Education in Taiwan. The authors gratefully acknowledge financial support from the Ministry of Science and Technology in Taiwan (MOST 109-2511-H-038-004-, MOST 110-2634-F-002-045- and MOST 107-2410-H-008-012-MY3) acknowledge financial support from the Ministry of Science and Technology in Taiwan [MOST107-3017-F-002-004] and [MOST107-2410-H-008 -012 -MY3].

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Abstract

Among the various methods adopted to compare health inequality, Makdissi and Yazbeck (J Health Econ 34:84–95, 2014) developed positional stochastic dominance conditions to identify an ordering. To reach a conclusion, their rules require that the (generalized) health concentration curve of the dominant distribution lie above that of the dominated one. However, it is frequently observed in practice that these curves intersect. Our paper proposes new criteria to cope with this problem by allowing a relatively small violation of the condition proposed by Makdissi and Yazbeck (2014). We characterize our conditions by linking them with some ethical constraints of the weight functions. We further use individual data for Côte d’Ivoire and Guinea from the Demographic and Health Survey to demonstrate the usefulness of our newly-proposed method.

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