Table 3 Summary of Inequality Indicators Evaluated for Health Benefits Analysis.

Formula

Where z_i = ln(x_i)

where ε = inequality aversion (range from 0 to infinity)

Approach for comparisons

Relative to all those better off

Relative to the average

Relative to the average

Relative to the average

Relative to the average

Relative to the average

Method for aggregation

Additive

Weighted additive

Weighted additive

Weighted additive

Weighted additive

Weighted additive

Principle of transfers?

Y

N (fails for transfers at high levels)

N (fails for transfers at high levels)

Y

Y

Y

Subgroup decomposable in standard form?

N (unless subgroups strictly ordered by income)

N

Y (within-group and between-group not independent)

Y (although not strictly additive)

Y

Y

Avoids value judgment about weights?

N (in standard application; extended Gini can address)

N

N

Y

N

N

Conclusions

Rejected as stand- alone indicator; potentially useful for sensitivity analyses

Rejected

Rejected

Accepted

Rejected as stand-alone indicator; useful in combination with other indicators

Rejected as stand-alone indicator; useful in combination with other indicators