Journal of Health Economics 26 (2007) 414–421
Comment
Health inequality and non-monotonicity of the health
related social welfare function
Indranil Dutta
a,b,∗
a
UNU-WIDER, Helsinki 00160, Finland
b
Department of Economics, University of Sheffield, Sheffield, UK
Received 7 November 2005; received in revised form 31 May 2006; accepted 1 August 2006
Available online 7 September 2006
Abstract
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.
© 2006 Elsevier B.V. All rights reserved.
JEL classification: D39; D63; I10
Keywords: Health inequality; Non-monotonicity; Social welfare function
1. Introduction
How to meaningfully account for the equity and efficiency trade-off in health is an important
issue in health economics. To that end, Dolan (1998), in a similar vein to the standard social
∗
Present address: UNU-WIDER, Katajanokanlaituri 6 B, Helsinki 00160, Finland. Tel.: +358 9 61599212;
fax: +358 9 61599333.
E-mail address: dutta@wider.unu.edu.
0167-6296/$ – see front matter © 2006 Elsevier B.V. All rights reserved.
doi:10.1016/j.jhealeco.2006.08.001