AI Article Synopsis
- The study investigates how individuals perceive different types of health inequality—specifically, pure health inequality versus income-related health inequality—through a resource allocation experiment involving UK adults.
- Findings indicate that the average participant has a significant aversion to pure health inequality, which questions traditional economic models focused solely on maximizing health outcomes.
- Interestingly, while there is higher aversion to income-related health inequality, people don't prioritize the health of poorer individuals as much as expected, and knowledge of income's role in health doesn't necessarily increase aversion to this inequality.
Article Abstract
We design a novel experiment to identify aversion to pure (univariate) health inequality separately from aversion to income-related and income-caused health inequality. Participants allocate resources to determine health of individuals. Identification comes from random variation in resource productivity and information on income and its causal effect. We gather data (26,286 observations) from a sample of UK adults (n = 337) and estimate pooled and participant-specific social preferences while accounting for noise. The median person has strong aversion to pure health inequality, challenging the health maximisation objective of economic evaluation. Aversion to health inequality is even stronger when it is related to income. However, the median person prioritises health of poorer individuals less than is assumed in the standard measure of income-related health inequality. On average, aversion to that inequality does not become stronger when low income is known to cause ill-health. There is substantial heterogeneity in all three types of inequality aversion.
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| http://dx.doi.org/10.1016/j.jhealeco.2024.102856 | DOI Listing |
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