Table 3.

Summary of Inequality Indicators Evaluated for Health Benefits Analysis.

	Gini index	Variance of logarithms	Squared coefficient of variation	Atkinson index	Mean log deviation	Theil's entropy index
Formula		Where zi = ln(xi)		where ε = inequality aversion (range from 0 to infinity)
Approach for comparisons	Relative to all those better off	Relative to the average	Relative to the average	Relative to the average	Relative to the average	Relative to the average
Method for aggregation	Additive	Weighted additive	Weighted additive	Weighted additive	Weighted additive	Weighted additive
Principle of transfers?	Y	N (fails for transfers at high levels)	N (fails for transfers at high levels)	Y	Y	Y
Subgroup decomposable in standard form?	N (unless subgroups strictly ordered by income)	N	Y (within-group and between-group not independent)	Y (although not strictly additive)	Y	Y
Avoids value judgment about weights?	N (in standard application; extended Gini can address)	N	N	Y	N	N
Conclusions	Rejected as stand- alone indicator; potentially useful for sensitivity analyses	Rejected	Rejected	Accepted	Rejected as stand-alone indicator; useful in combination with other indicators	Rejected as stand-alone indicator; useful in combination with other indicators