Healthcare Economist July 2, 2025
Jason Shafrin

Catastrophic healthcare expenditures (CHE) are highly problematic for families are are unequally distributed throughout society. However, how can we quantify the incidence, intensity and inequality of CHE in a society?

A paper by Ogwang and Mwabu (2025) provide one methodology by using the Watts poverty measure and adapting it to measure CHE. We first describe what the Watts poverty measure is. Next we explain how to calculate the Ogwang and Mwabu Watts catastrophic health expenditure (WCHE) metric both in aggregate and by subgroup. Finally, I have provided a simple Excel spreadsheet you can download to see how WCHE is calculated.

As described above, the metric is based on the Watts poverty measure, developed by Harold W. Watts in 1964. Perplexity...

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