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A Simplified Model For Social Welfare Analysis: An Application To Spain, 1973–74 To 1980–81

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  • Javier Ruiz‐Castillo

Abstract

Most of the literature on income distribution has concentrated on inequality. In this paper we introduce a concern for efficiency in a social welfare model. We propose a simple but useful specification which combines three features: (i) the selection of measurement instruments in the relative and the absolute case on the grounds of their properties for applied work; (ii) a procedure to make welfare comparisons across households with different needs, in a model in which equivalence scales depend only on house‐hold size; and (iii) the use of household specific statistical price indices to make intertemporal comparisons in real terms. The methodology is applied to the study of the role of prices and demographic effects in the evolution of the standard of living in Spain from 1973–74 to 1980–81.

Suggested Citation

  • Javier Ruiz‐Castillo, 1998. "A Simplified Model For Social Welfare Analysis: An Application To Spain, 1973–74 To 1980–81," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 123-141, March.
    • Handle: RePEc:bla:revinw:v:44:y:1998:i:1:p:123-141
    DOI: 10.1111/j.1475-4991.1998.tb00256.x
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