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A framework for testing the equality between the health concentration curve and the 45‐degree line
Authors:Mohamad A. Khaled  Paul Makdissi  Rami V. Tabri  Myra Yazbeck
Affiliation:1. University of Queensland, Brisbane, QLD, Australia;2. Department of Economics, University of Ottawa, Ottawa, ON, Canada;3. University of Sydney, Sydney, NSW, Australia;4. School of Economics, University of Queensland, Brisbane, QLD, Australia
Abstract:The health concentration curve is the standard graphical tool to depict socioeconomic health inequality in the literature on health inequality. This paper shows that testing for the absence of socioeconomic health inequality is equivalent to testing if the conditional expectation of health on income is a constant function that is equal to average health status. In consequence, any test for parametric specification of a regression function can be used to test for the absence of socioeconomic health inequality (subject to regularity conditions). Furthermore, this paper illustrates how to test for this equality using a test for parametric regression functional form and applies it to health‐related behaviors from the National Health Survey 2014.
Keywords:health concentration curves  inference  socioeconomic health inequality
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