Decomposition of Concentration Index using Generalised Linear Model: Analysis of Socio-Economic Determinants of Health Inequality in the Northern Territory of Australia

Yuejen Zhao

Regional and Sectoral Economic Studies, 2013, vol. 13, issue 1, 145-154

Abstract: This paper aims to extend the existing linear decomposition techniques for the concentration index to generalised linear models. The second order Taylor expansion is used to derive a linear approximation of the partial concentration indices. This approach adheres closely to the standard decomposition method in the linear settings. The method is illustrated using age-sex standardised mortality rate data from Australia to examine the socioeconomic determinants of Indigenous health inequality. The empirical results demonstrate the usefulness of this method. The new approach provides a more efficient and flexible way to quantify the contributions of the underlying determinants of health inequality in a nonlinear and multivariate context.

Date: 2013
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