A robust normative evaluation of India's performance in allocating risks of death

Nicolas Gravel, Abhiroop Mukhopadhyay, Benoît Tarroux
2008 Indian Growth and Development Review  
This paper provides a robust normative evaluation of the recent evolution of Indians'exposures to health-related risks. Speci...cally, the paper compares the distribution of individuals'risks of death in India in 2002 with that of 1995 using two new ethically robust criteria. A probability of death is assigned to each individual as an estimated probit function of several explanatory variables, including the individual's district of residence. The criteria uses ranks distributions of individuals
more » ... risks in the same way than would all Von Neumann-Morgenstern (VNM) social planners who respect, in the usual Pareto sense -individuals VNM preferences over state-dependent lotteries. The ...rst criterion assumes that individuals'VNM utilities are increasing in money and value marginally money more when it is received in the bad state than in the good one. The second criterion makes the extra assumption that individuals are risk averse and have VNM utility functions that are more concave in the bad state than in the good one. It happens that the distribution of risk of death in India in 2002 dominates that of 1995 according to the second criterion but not according to the ...rst. infer that p and q are not di¤erent.
doi:10.1108/17538250810868152 fatcat:ipyzadhn4rggzj7m5qpwmvzyk4