Journal
HEALTH ECONOMICS
Volume 20, Issue 10, Pages 1155-1160Publisher
WILEY
DOI: 10.1002/hec.1752
Keywords
Health inequality; concentration index; binary outcomes
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The binary variable is one of the most common types of variables in the analysis of income-related health inequalities. I argue that while the binary variable has some unusual properties, it shares many of the properties of the ratio-scale variable and hence lends itself to both relative and absolute inequality analyses, albeit with some qualifications. I argue that criticisms of the normalization I proposed in an earlier paper, and of the use of the binary variable for inequality analysis, stem from a misrepresentation of the properties of the binary variable, as well as a switch of focus away from relative inequality to absolute inequality. I concede that my normalization is not uncontentious, but, in a way, that has not previously been noted. Copyright (C) 2011 John Wiley & Sons, Ltd.
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