IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v23y2014i1p117-121.html
   My bibliography  Save this article

A Consistent Decomposition Of The Redistributive, Vertical, And Horizontal Effects Of Health Care Finance By Factor Components

Author

Listed:
  • Luis A. Hierro
  • Rosario Gómez‐Álvarez
  • Pedro Atienza

Abstract

In studies on the redistributive, vertical, and horizontal effects of health care financing, the sum of the contributions calculated for each financial instrument does not equal the total effects. As a consequence, the final calculations tend to be overestimated or underestimated. The solution proposed here involves the adaptation of the Shapley value to achieve additive results for all the effects and reveals the relative contributions of different instruments to the change of whole‐system equity. An understanding of this change would help policy makers attain equitable health care financing. We test the method with the public finance and private payments of health care systems in Denmark and the Netherlands. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Luis A. Hierro & Rosario Gómez‐Álvarez & Pedro Atienza, 2014. "A Consistent Decomposition Of The Redistributive, Vertical, And Horizontal Effects Of Health Care Finance By Factor Components," Health Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 117-121, January.
    • Handle: RePEc:wly:hlthec:v:23:y:2014:i:1:p:117-121
    DOI: 10.1002/hec.2898
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.2898
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hec.2898?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hai Zhong, 2009. "Extensions to decomposition of the redistributive effect of health care finance," Health Economics, John Wiley & Sons, Ltd., vol. 18(10), pages 1176-1187, October.
    2. Frédéric Chantreuil & Alain Trannoy, 2011. "Inequality Decomposition Values," Annals of Economics and Statistics, GENES, issue 101-102, pages 13-36.
    3. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
    4. Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, vol. 9(1), pages 51-89, December.
    5. repec:adr:anecst:y:2011:i:101-102:p:02 is not listed on IDEAS
    6. Aronson, J Richard & Johnson, Paul & Lambert, Peter J, 1994. "Redistributive Effects and Unequal Income Tax Treatment," Economic Journal, Royal Economic Society, vol. 104(423), pages 262-270, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John E. Ataguba & Hyacinth E. Ichoku & Chijioke O. Nwosu & James Akazili, 2020. "An Alternative Approach to Decomposing the Redistributive Effect of Health Financing Between and Within Groups Using the Gini Index: The Case of Out-of-Pocket Payments in Nigeria," Applied Health Economics and Health Policy, Springer, vol. 18(6), pages 747-757, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thierry Debrand & Christine Sorasith, 2010. "Bouclier sanitaire : choisir entre égalité et équité ? Une analyse à partir du modèle ARAMMIS," Working Papers DT32, IRDES institut for research and information in health economics, revised Jun 2010.
    2. Duclos, Jean-Yves, 1998. "Social evaluation functions, economic isolation and the Suits index of progressivity," Journal of Public Economics, Elsevier, vol. 69(1), pages 103-121, July.
    3. Duclos, J.Y., 1995. "Economic Isolation, Inequality, and the Suits Index of Progressivity," Papers 9510, Laval - Recherche en Politique Economique.
    4. Junyi Zhu, 2014. "Bracket Creep Revisited - with and without r > g: Evidence from Germany," Journal of Income Distribution, Ad libros publications inc., vol. 23(3), pages 106-158, November.
    5. van Doorslaer, Eddy & Wagstaff, Adam & van der Burg, Hattem & Christiansen, Terkel & Citoni, Guido & Di Biase, Rita & Gerdtham, Ulf-G. & Gerfin, Mike & Gross, Lorna & Hakinnen, Unto, 1999. "The redistributive effect of health care finance in twelve OECD countries," Journal of Health Economics, Elsevier, vol. 18(3), pages 291-313, June.
    6. Nicolas Herault & Stephen P. Jenkins, 2021. "Redistributive effect and the progressivity of taxes and benefits: evidence for the UK, 1977–2018," Working Papers 592, ECINEQ, Society for the Study of Economic Inequality.
    7. Chantreuil, Frédéric & Fourrey, Kévin & Lebon, Isabelle & Rebiere, Therese, 2020. "Decomposing US Income Inequality à La Shapley: Race Matters, but Gender Too," IZA Discussion Papers 12950, Institute of Labor Economics (IZA).
    8. Nolan, Matt, 2018. "Horizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013," Working Paper Series 7657, Victoria University of Wellington, Chair in Public Finance.
    9. Essama-Nssah, B., 2008. "Assessing the redistributive effect of fiscal policy," Policy Research Working Paper Series 4592, The World Bank.
    10. Adam Wagstaff & Marcel Bilger & Zurab Sajaia & Michael Lokshin, 2011. "Health Equity and Financial Protection : Streamlined Analysis with ADePT Software," World Bank Publications - Books, The World Bank Group, number 2306, December.
    11. Immervoll, Herwig, 2004. "Falling up the stairs: an exploration of the effects of ‘bracket creep’ on household incomes," EUROMOD Working Papers EM3/04, EUROMOD at the Institute for Social and Economic Research.
    12. Hérault, Nicolas & Jenkins, Stephen P., 2021. "Redistributive effect and the progressivity of taxes and benefits: evidence for the UK, 1977–2018," LSE Research Online Documents on Economics 112679, London School of Economics and Political Science, LSE Library.
    13. Achille Vernizzi & Edyta Mazurek, 2013. "Some Considerations on Measuring the Progressive Principle Violations and the Potential Equity in Income Tax Systems," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 14(3), pages 467-486, September.
    14. Levy, Horacio & Nogueira, José Ricardo & Siqueira, Rozane Bezerra & Immervoll, Herwig & O'Donoghue, Cathal, 2010. "Simulating the impact of inflation on the progressivity of personal income tax in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(4), December.
    15. Ivica Urban & Peter J. Lambert, 2008. "Redistribution, Horizontal Inequity, and Reranking," Public Finance Review, , vol. 36(5), pages 563-587, September.
    16. Wagstaff, Adam & van Doorslaer, Eddy & van der Burg, Hattem & Calonge, Samuel & Christiansen, Terkel & Citoni, Guido & Gerdtham, Ulf-G & Gerfin, Mike & Gross, Lorna & Hakinnen, Unto, 1999. "Equity in the finance of health care: some further international comparisons1," Journal of Health Economics, Elsevier, vol. 18(3), pages 263-290, June.
    17. Carlos Gradín, 2021. "Inequality by Population Groups and Income Sources: Accounting for Inequality Changes in Spain During the Recession," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 481-508, June.
    18. Härpfer, Marco & Cacace, Mirella & Rothgang, Heinz, 2009. "And fairness for all? Wie gerecht ist die Finanzierung im deutschen Gesundheitssystem? Eine Berechnung des Kakwani-Index auf Basis der EVS," Working papers of the ZeS 04/2009, University of Bremen, Centre for Social Policy Research (ZeS).
    19. Bernardo Candia & Eduardo Engel, 2018. "Taxes, Transfers and Income Distribution in Chile: Incorporating Undistributed Profits," Commitment to Equity (CEQ) Working Paper Series 82, Tulane University, Department of Economics.
    20. O'Neill, D. & Van Kerm P., 2003. "A New Approach for Analysing Income Convergence across Countries," Economics Department Working Paper Series n1261003, Department of Economics, National University of Ireland - Maynooth.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:23:y:2014:i:1:p:117-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.