Testing for Marginal Changes in Income Distributions with Lorenz and Concentration Curves

Bishop, John A.; Chow, Victor; Formby, John P.

doi:10.2307/2527065

Cited by 46 publications

(18 citation statements)

References 15 publications

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“…If the interest is to test dominance of a concentration curve(s) against the Lorenz curve of expenditure/consumption or against another concentration curve estimated from the same sample, then the standard errors for the differences between curve ordinates must be computed though this is complicated by the fact that, in such cases, the curves are dependent. An appropriate variance-covariance matrix which allows for dependence between curves was derived by Bishop et al (1994) and Davidson & Duclos (1997) (Note 8)to help overcome the problem. Dominance tests in this study followed the above which was applied by Younger (1999, 2000) and O'Donnell et al (2007) but in addition to accounting for the possible dependence between concentration curves, the current study used the covariance matrix for the ordinates estimates which was also used by Sahn and Younger (1999).…”

Section: Methodsmentioning

confidence: 99%

Distributional Impact of Public Expenditure on Education and Healthcare in Nigeria: A Gender Based Welfare Dominance Analysis

Amakom¹,

Ogujiuba²

2010

IJBM

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Investing in education and healthcare is one of the suggested ways the poor can escape from poverty, if properly targeted. The two sectors (education and heaathcare) in Nigeria have experienced various forms of subsidies but surprisingly, the poverty situation in Nigeria aside from deepening has been severe, pervasive and multi-dimensional with the female folk mostly affected by all counts. Based on the above argument, the study assessed how equitably public expenditure in education and healthcare have been well targeted by gender. The study employed the welfare dominance tests to determine the incidence of expenditure and how subsidy has been beneficial to men and women alike. The study found that primary education was absolutely progressive for both sexes while primary healthcare subsidies were just progressive. Interestingly, secondary education was only progressive for female while tertiary education and healthcare for both male and female were regressive and not pro poor.

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Section: Methodsmentioning

confidence: 99%

Distributional Impact of Public Expenditure on Education and Healthcare in Nigeria: A Gender Based Welfare Dominance Analysis

Amakom¹,

Ogujiuba²

2010

IJBM

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“…The range of Kakwani progressivity index is from +1, denoting the highest degree of progressivity, to -2, reflecting the highest possible degree of regressively. A value of zero for the Kakwani progressivity index would indicate that health care payments were proportional to income (20).…”

Section: The Kakwani Progressivity Indexmentioning

confidence: 99%

Equity in Health Care Financing Among Iranian Households

et al. 2015

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Background: One of the main challenges of all health systems is achieving equity in healthcare financing. The Kakwani index is an equity index used to show how distant a financing source is from the proportional status. Objectives: The present study aimed to measure the equity of Iran's health system financing in rural and urban areas between 2001 and 2010 using the Kakwani index. Materials and Methods: This study analyzed secondary data for the years 2001 through 2010 in Iran. The data of annual household expenditures and an income survey conducted by the statistical center of Iran (SCI) were used in this study. In addition, out of pocket payments and health insurance premiums, as two sources of healthcare financing, were investigated regarding vertical equity. The T-test was used to test the dominance of the curves. Results: The Kakwani index was negative (regressive) for out of pocket payments among both rural and urban households (-0.168 in 2001 to -0.197 . The dominance test (T-test) showed the concentration curves of out of pocket payments in both areas dominated the Lorenz curve in all years, but the dominance test (T-test) for health insurance premium payments did not follow a regular trend during the study period. Conclusions: Due to the negativity of the Kakwani index for out-of-pocket payments, a great burden on the households can be predicted, and the progressivity of health insurance premium payments implies that expanding insurance coverage may lead to more equitable financing. Thus, the government should take the responsibility to expand the service and cost coverage of insurance plans and to develop policies that protect poor people.

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“…For the dominance tests standard errors of the ordinates of curves and of differences in ordinates are computed, allowing for dependence between curves where appropriate (Bishop, Chow, and Formby 1994;Davidson and Duclos 1997).…”

Section: D a T A A N D M E T H O D Smentioning

confidence: 99%

The Incidence of Public Spending on Healthcare: Comparative Evidence from Asia

O’Donnell¹,

Doorslaer²,

Rannan-Eliya³

et al. 2007

The World Bank Economic Review

204

183

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The article compares the incidence of public healthcare across 11 Asian countries and provinces, testing the dominance of healthcare concentration curves against an equal distribution and Lorenz curves and across countries. The analysis reveals that the distribution of public healthcare is prorich in most developing countries. That distribution is avoidable, but a propoor incidence is easier to realize at higher national incomes. The experiences of Malaysia, Sri Lanka, and Thailand suggest that increasing the incidence of propoor healthcare requires limiting the use of user fees, or protecting the poor effectively from them, and building a wide network of health facilities. Economic growth may not only relax the government budget constraint on propoor policies but also increase propoor incidence indirectly by raising richer individuals' demand for private sector alternatives. JEL Codes: H22, H42, H51.

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Testing for Marginal Changes in Income Distributions with Lorenz and Concentration Curves

Cited by 46 publications

References 15 publications

Distributional Impact of Public Expenditure on Education and Healthcare in Nigeria: A Gender Based Welfare Dominance Analysis

Distributional Impact of Public Expenditure on Education and Healthcare in Nigeria: A Gender Based Welfare Dominance Analysis

Equity in Health Care Financing Among Iranian Households

The Incidence of Public Spending on Healthcare: Comparative Evidence from Asia

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