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Robust inequality comparisons based on ordinal attributes with Kolm-independent measures

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  • Gaston Yalonetzky

    (University of Leeds)

Abstract

The literature on health inequality with ordinal attributes is benefiting from the development of inequality measures, which are useful in any wellbeing assessment involving ordinal variables (e.g. subjective wellbeing). Lv, Wang, and Xu ("On a new class of measures for health inequality based on ordinal data", Journal of Economic Inequality, 2015) recently characterized a new class of this type of inequality measures axiomatically. In addition to their appealing functional forms, these measures are the only ones in the literature satisfying a property of independence, inspired by Kolm ("Unequal inequalities I", Journal of Economic Theory, 1976). As acknowledged by the authors, it is reasonable to be concerned about the robustness of inequality comparisons with ordinal attributes to the several alternative suitable measures within the class. This note derives the stochastic dominance condition whose fulfilment guarantees that all inequality measures within the class rank a pair of distributions consistently; thereby providing an empirically implementable robustness test for this class of measures.

Suggested Citation

  • Gaston Yalonetzky, 2016. "Robust inequality comparisons based on ordinal attributes with Kolm-independent measures," Economics Bulletin, AccessEcon, vol. 36(4), pages 2203-2208.
    • Handle: RePEc:ebl:ecbull:eb-16-00516
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    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I4-P214.pdf
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    References listed on IDEAS

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    1. Benedicte Apouey, 2007. "Measuring health polarization with self‐assessed health data," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 875-894, September.
    2. Erreygers, Guido, 2009. "Correcting the Concentration Index: A reply to Wagstaff," Journal of Health Economics, Elsevier, vol. 28(2), pages 521-524, March.
    3. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    4. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    5. Adi Lazar & Jacques Silber, 2013. "On The Cardinal Measurement Of Health Inequality When Only Ordinal Information Is Available On Individual Health Status," Health Economics, John Wiley & Sons, Ltd., vol. 22(1), pages 106-113, January.
    6. Abul Naga, Ramses H. & Yalcin, Tarik, 2008. "Inequality measurement for ordered response health data," Journal of Health Economics, Elsevier, vol. 27(6), pages 1614-1625, December.
    7. Erreygers, Guido, 2009. "Correcting the Concentration Index," Journal of Health Economics, Elsevier, vol. 28(2), pages 504-515, March.
    8. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
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    Cited by:

    1. Silber, Jacques & Yalonetzky, Gaston, 2021. "Measuring welfare, inequality and poverty with ordinal variables," GLO Discussion Paper Series 962, Global Labor Organization (GLO).
    2. Valérie Bérenger & Jacques Silber, 2022. "On the Measurement of Happiness and of its Inequality," Journal of Happiness Studies, Springer, vol. 23(3), pages 861-902, March.

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    More about this item

    Keywords

    Stochastic dominance; Inequality with ordinal attributes;

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I0 - Health, Education, and Welfare - - General

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