Inference Procedures to Quantify the Efficiency-Equality Trade-Off in Health from Stated Preferences

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Publication Details

Subtitle: A Case Study in Portugal
Author list: Pinho, M., Botelho, A.
Publisher: Springer (part of Springer Nature): Springer Open Choice Hybrid Journals - CC-BY-NC / Springer Verlag (Germany)
Publication year: 2018
Journal: Applied Health Economics and Health Policy (1175-5652)
ISSN: 1175-5652
eISSN: 1179-1896
Languages: English-Great Britain (EN-GB)


Abstract

Objectives: This article develops two inference procedures to calculate
the inequality aversion and alpha parameters of a health-related social
welfare function with constant elasticity (CES-HRSWF) using stated
preferences. Based on the relative concept of inequality, a range of
values were proposed for the trade-offs between improving total
population health and reducing health inequalities. Methods: A
self-administered questionnaire was used to collect data from a sample
of 422 college students in Portugal. Respondents faced three
hypothetical allocation scenarios where they should decide between two
health programmes that assign different health gains to two anonymous
sub-groups of the populations and to two sub-groups identified by
socio-economic class. Combinations of the median response to these three
questions were used to estimate the parameters of the CES-HRSWF.
Results: Findings suggest that the quantification of the
efficiency-equality trade-off is not independent of the inference
procedure used. Plausible values for the inequality aversion and for the
alpha parameters were obtained ranging from 2.24 to 4.85 and from 0.5
to 0.58, respectively. Conclusions: Respondents revealed some aversion
to health inequality. However, the extent of this aversion seems to be
sensitive to the: (i) identification of the groups by occupation status,
(ii) size of the health gain and (iii) the inference procedure used.


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Last updated on 2019-10-08 at 00:16