Distribution-Free Statistical Inference with Lorenz Curves and Income Shares

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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“…In addition, N shows the sample size of each year (21)(22)(23)(24)(25). Calculating Z, there would be four possible situations.…”

Section: Dominance Test (T-test)mentioning

confidence: 99%

Equity in Health Care Financing Among Iranian Households

et al. 2015

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“…The latter is used in economics to measure the inequality of incomes (see Beach and Davidson (1983), Dardanoni and Forcina (1999) for related inference). More precisely, let Y be a non-negative random variable with cdf F .…”

Section: Pqdmentioning

confidence: 99%

Nonparametric Tests for Positive Quadrant Dependence

Denuit

Scaillet

2002

SSRN Journal

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We consider distributional free inference to test for positive quadrant dependence, i.e. for the probability that two variables are simultaneously small (or large) being at least as great as it would be were they dependent. Tests for its generelisation in higher dimensions, namely positive orthant dependences, are also analysed. We propost two types of testing procedures. The first procedure is based on the specification of the dependence concepts in terms of distribution functions, while the second procedure exploits te copula representation. For each specification a distance est and an intersection-union test for inequality constraints are deveoped depending on the definition of null and alternative hypotheses. An empirical illustration is given for US and Danish insurance claim data. Practical implications for the design of reinsurance treaties are also discussed. AbstractWe consider distributional free inference to test for positive quadrant dependence, i.e. for the probability that two variables are simultaneously small (or large) being at least as great as it would be were they dependent. Tests for its generalisation in higher dimensions, namely positive orthant dependences, are also analysed. We propose two types of testing procedures. The first procedure is based on the specification of the dependence concepts in terms of distribution functions, while the second procedure exploits the copula representation. For each specification a distance test and an intersection-union test for inequality constraints are developed depending on the definition of null and alternative hypotheses. An empirical illustration is given for US and Danish insurance claim data. Practical implications for the design of reinsurance treaties are also discussed.

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“…Barrett and Donald (2003) developed pair-wise SD comparisons that relied on Kolmogorov-Smirnov type tests developed within a consistent testing environment. This o¤ers a generalization to Anderson (1996), Beach and Davidson (1983) and Davidson and Duclos (2000) who have looked at second order SD using tests that rely on pair-wise comparisons made at a …xed number of arbitrary chosen points. This is not a desirable feature since it introduces the possibility of test inconsistency.…”

Section: Introductionmentioning

confidence: 99%

Measuring world governance: revisiting the institutions hypothesis

Pinar

2014

Empir Econ

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We consider the weighting scheme that results in a best-case scenario in the construction of the World Governance Indicators (WGIs), a proxy of institutional quality. To do that we use an approach that relies on consistent tests for stochastic dominance e¢ ciency of a given index with respect to all possible indices constructed from a set of individual components. The test statistics and the estimators are computed using mixed integer programming methods. The results show that the equally-weighted (…xed weights) composite WGI index is not the best-case scenario and that governance indicators at di¤erent years should be weighted di¤erently. Furthermore, we revisit the institutions hypothesis in the empirical growth literature, where institutional quality is the main determinant of long term development. We …nd that not only institutions matter for economic development, but also geography and macroeconomic policies do a¤ect economic development directly. JEL Classi…cations: C12; C13; C14; C15; O1; O57

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Distribution-Free Statistical Inference with Lorenz Curves and Income Shares

Cited by 265 publications

References 25 publications

Equity in Health Care Financing Among Iranian Households

Equity in Health Care Financing Among Iranian Households

Nonparametric Tests for Positive Quadrant Dependence

Measuring world governance: revisiting the institutions hypothesis

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