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The Non‐Constancy Of Equivalence Scales

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  • Denis Conniffe

Abstract

Comparisons of households of differing composition are usually achieved through the use of equivalence scales. It is well known that the choice of scales can have considerable impact on the conclusions drawn from studies of welfare and poverty. There is a considerable literature on the theoretical issues relating to equivalence scales, but applied work on income distribution and related areas almost invariably takes scales to be constant irrespective of income. This paper focuses on the relation of scale to income, by applying theoretical analysis to some simple household types. The conclusion is that scales are not constant and that current practice should be changed.

Suggested Citation

  • Denis Conniffe, 1992. "The Non‐Constancy Of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(4), pages 429-443, December.
    • Handle: RePEc:bla:revinw:v:38:y:1992:i:4:p:429-443
    DOI: 10.1111/j.1475-4991.1992.tb00453.x
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    Cited by:

    1. Olivier Bargain & Olivier Donni & Monnet Gbakou, 2010. "The Measurement of Child Costs: Evidence from Ireland," The Economic and Social Review, Economic and Social Studies, vol. 41(1), pages 1-20.
    2. Denis Conniffe & Brian Nolan & Christopher T. Whelan, 1999. "Household Composition, Living Standards, and "Needs"," Papers WP106, Economic and Social Research Institute (ESRI).
    3. Karina Doorley & Luke Duggan & Theano Kakoulidou & Barra Roantree, 2024. "Equivalisation (once again)," Trinity Economics Papers tep0124, Trinity College Dublin, Department of Economics.
    4. Udo Ebert & Peter J. Lambert, 2004. "Horizontal Equity and Progression When Equivalence Scales Are Not Constant," Public Finance Review, , vol. 32(4), pages 426-440, July.
    5. Callan, Tim & Nolan, Brian & Whelan, Christopher T., 1996. "A Review of the Commission on Social Welfare's Minimum Adequate Income," Research Series, Economic and Social Research Institute (ESRI), number PRS29.

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