Health inequality and non-monotonicity of the health related social welfare function.
In a recent paper in this journal Abasolo and Tsuchiya [Abasolo, I., Tsuchiya, A., 2004. Exploring social welfare functions and violation of monotonicity: an example from inequalities in health. Journal of Health Economics 23, 313-329] have strongly argued for the use of a non-monotonic health related social welfare function. This note discusses both the limitations of the measure proposed by Abasolo and Tsuchiya [Abasolo, I., Tsuchiya, A., 2004. Exploring social welfare functions and violation of monotonicity: an example from inequalities in health. Journal of Health Economics 23, 313-329] and the problems associated with their empirics. We are able to show how non-monotonicity may lead to paradoxical results and policies. Further we examine the empirics of Abasolo and Tsuchiya [Abasolo, I., Tsuchiya, A., 2004. Exploring social welfare functions and violation of monotonicity: an example from inequalities in health. Journal of Health Economics 23, 313-329] and provide an alternative explanation to the observed patterns in the data that do not violate monotonicity. Finally we briefly mention why the Atkinson-Sen framework may be more appropriate as a way forward.
Dutta
Indranil
I
UNU-WIDER, Helsinki 00160, Finland; Department of Economics, University of Sheffield, Sheffield, UK. dutta@wider.unu.edu
D006297:Health Services Accessibility; D006801:Humans; D015233:Models, Statistical; D012946:Social Welfare / Q000191:economics*; D013222:State Medicine / Q000458:organization & administration; D006113:United Kingdom