ACI can be calculated using disaggregated data and individual-level data.
Subgroups in disaggregated data are weighted according to their population
share, while individuals are weighted by sample weight in the case of data
from surveys.
The calculation of ACI is based on a ranking of the whole population from
the most disadvantaged subgroup (at rank 0) to the most advantaged subgroup
(at rank 1), which is inferred from the ranking and size of the subgroups.
ACI can be calculated as twice the covariance between the health indicator
and the relative rank. Given the relationship between covariance and
ordinary least squares regression, ACI can be obtained from a
regression of a transformation of the health variable of interest on the
relative rank. For more information on this inequality measure see
Schlotheuber (2022) below.
Interpretation: ACI is 0 if there is no inequality. The larger the
absolute value of ACI, the higher the level of inequality. Positive values
indicate a concentration of the indicator among advantaged subgroups, and
negative values indicate a concentration of the indicator among
disadvantaged subgroups.
Type of summary measure: Complex; absolute; weighted
Applicability: Ordered dimension of inequality with more than two
subgroups
Warning: The confidence intervals are approximate and might be biased.