Research

Health Economics Review

, 2:10

Open Access This content is freely available online to anyone, anywhere at any time.

A modified Kakwani measure for health inequality

  • Mototsugu FukushigeAffiliated withGraduate School of Economics, Osaka University Email author 
  • , Noriko IshikawaAffiliated withFaculty of Economics, Konan University
  • , Satoko MaekawaAffiliated withFaculty of Economics, Kansai University

Abstract

We propose simple modifications for the Kakwani tax progressivity measure that make it suitable for evaluating access inequality for medical services. Our modification is to measure inequality using the ratio of the concentration index to the Gini coefficient instead of the difference between them. We also propose a measure using the Gini coefficient or concentration index of consumption expenditure as the denominator in the modified measure as an alternative type of modified measure. This measure can also be interpreted as the income/consumption expenditure elasticity evaluated at the mean. Additionally, we propose a decomposition method using expenditure components and provide an empirical example with Japanese data.

Keywords

Health inequality Kakwani measure Decomposition I14 I10