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Appraisal Of Different Methods Of Estimating Equivalence Scales And Their Results

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  • J. L. NICHOLSON

Abstract

This paper discusses the problems encountered in constructing equivalence scales of the relative incomes required to enable families of different sizes or in different circumstances to enjoy the same standard of living. Theoretical problems and limitations of various methods are discussed, and examples of empirical results are presented.

Suggested Citation

  • J. L. Nicholson, 1976. "Appraisal Of Different Methods Of Estimating Equivalence Scales And Their Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 22(1), pages 1-11, March.
  • Handle: RePEc:bla:revinw:v:22:y:1976:i:1:p:1-11
    DOI: j.1475-4991.1976.tb01138.x
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    File URL: https://doi.org/10.1111/j.1475-4991.1976.tb01138.x
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    References listed on IDEAS

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    1. Singh, Balvir & Nagar, A L, 1973. "Determination of Consumer Unit Scales," Econometrica, Econometric Society, vol. 41(2), pages 347-355, March.
    2. Seneca, Joseph J & Taussig, Michael K, 1971. "Family Equivalence Scales and Personal Income Tax Exemptions for Children," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 253-262, August.
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    Cited by:

    1. Olken, Benjamin A., 2005. "Revealed community equivalence scales," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 545-566, February.
    2. Steven F. Koch, 2023. "Basic Needs (in)Security and Subjective Equivalence Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(3), pages 723-757, October.
    3. Steven F. Koch, 2021. "Equivalence Scales with Endogeneity and Base Independence," Working Papers 202185, University of Pretoria, Department of Economics.
    4. Francisco Javier Lasso V. & Cristian Camilo Frasser L., 2015. "Calidad del empleo y bienestar: un análisis con escalas de equivalencia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 33(77), pages 117-132, June.
    5. Chao Li & John Gibson, 2013. "Spatial Price Differences and Inequality in China: Housing Market Evidence," Working Papers in Economics 13/06, University of Waikato.
    6. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany.
    7. Trevon D. Logan, 2011. "Economies Of Scale In The Household: Puzzles And Patterns From The American Past," Economic Inquiry, Western Economic Association International, vol. 49(4), pages 1008-1028, October.
    8. Yuxiang Ye & Steven F. Koch & Jiangfeng Zhang, 2020. "Modelling Required Energy Consumption with Equivalence Scales," Working Papers 202014, University of Pretoria, Department of Economics.
    9. Luis Ayala & Rosa Martínez & Jesús Ruiz Huerta, 2003. "Equivalence scales in tax and transfer policies," Investigaciones Economicas, Fundación SEPI, vol. 27(3), pages 593-614, September.
    10. Steven F. Koch, 2017. "Does the Equivalence Scale Matter? Equivalence and Out-of-Pocket Payments," Working Papers 687, Economic Research Southern Africa.
    11. Chao Li & John Gibson, 2014. "Spatial Price Differences and Inequality in the People's Republic of China: Housing Market Evidence," Asian Development Review, MIT Press, vol. 31(1), pages 92-120, March.
    12. Angus Deaton & Christina Paxson, 2003. "Engel's What? A Response to Gan and Vernon," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1378-1381, December.
    13. Angus S. Deaton & Christina Paxson, 1998. "Measuring Poverty among the Elderly," NBER Chapters, in: Inquiries in the Economics of Aging, pages 169-204, National Bureau of Economic Research, Inc.
    14. Simons, Andrew M., 2022. "What is the optimal locus of control for social assistance programs? Evidence from the Productive Safety Net Program in Ethiopia," Journal of Development Economics, Elsevier, vol. 158(C).
    15. Garcia-Diaz Rocio, 2012. "Demand-Based Cost-of-Children Estimates and Child Poverty," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-32, January.
    16. Rodríguez Biasone, Juan Ignacio, 2019. "Gastos de consumo de las familias y el costo de los niños," Nülan. Deposited Documents 3150, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    17. Sen, Amartya,, 1978. "Three notes on the concept of poverty," ILO Working Papers 991757103402676, International Labour Organization.
    18. Angus Deaton, 2016. "Measuring and Understanding Behavior, Welfare, and Poverty," American Economic Review, American Economic Association, vol. 106(6), pages 1221-1243, June.
    19. Christian Dudel & Jan Marvin Garbuszus & Julian Schmied, 2021. "Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data," Empirical Economics, Springer, vol. 60(4), pages 1629-1659, April.
    20. Ingrid Woolard & Murray Leibbrandt, 1999. "Measuring Poverty in South Africa," Working Papers 99033, University of Cape Town, Development Policy Research Unit.
    21. Olivier Donni, 2015. "Measuring the cost of children," IZA World of Labor, Institute of Labor Economics (IZA), pages 132-132, March.
    22. Matthew Gray & David Stanton, 2010. "Costs of children and Equivalence Scales: A Review of Methodological Issues and Australian Estimates," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(1), pages 99-115.
    23. Steven F. Koch, 2022. "Equivalence scales in a developing country with extensive inequality," South African Journal of Economics, Economic Society of South Africa, vol. 90(4), pages 486-512, December.
    24. John Paolo Rosales Rivera, 2022. "A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 242-267, September.
    25. Lydall H., 1981. "Effects of alternative measurement techniques on the estimation of inequality of income," ILO Working Papers 992126203402676, International Labour Organization.

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