Bayesian inference for health inequality and welfare using qualitative data
David Gunawan, William E Griffiths, Duangkamon Chotikapanich
ECONOMICS LETTERS | ELSEVIER SCIENCE SA | Published : 2018
We show how to use Bayesian inference to compare two ordinal categorical distributions commonly occurring with data on self-reported health status. Procedures for computing probabilities for first and second order stochastic dominance and S-dominance are described, along with methodology for obtaining posterior densities for health inequality indexes. The techniques are applied to four years of data on Australian self-reported health status.
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Awarded by Australian Research Council
The authors are grateful to an anonymous reviewer whose comments led to substantial improvements in the paper. Chotikapanich and Griffiths acknowledge support from Australian Research Council Grant DP140100673.