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Equivalence Scales Based on Revealed Preference Consumption Expenditures. The Case of Germany / Äquivalenzskalen auf der Basis von Konsumausgaben offenbarter Präferenzen. Ergebnisse für die Bundesrepublik Deutschland

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  • Merz Joachim

    (University of Lüneburg, Department of Economics and Social Sciences, is Director of the Research Institute on Professions (Forschungsinstitut Freie Berufe, FFB), Chair 'Statistics and Professions', and Head of the Research Project 'Time Use in Employment and Household Production - Dynamic Microanalyses with Paneldata', financed by the German National Science Foundation (DFG), Campus Scharnhorststraße 1, Gebäude 4, D-21335 Lüneburg, Germany)

  • Faik Jürgen

    (University of Frankfurt, Department of Economics, Chair of Social Policy, Prof. Dr. R. Hauser, Mertonstr. 17-25, D-60325 Frankfurt am Main, Germany)

Abstract

Equivalence scales are a prerequisite for any economic well-being comparison with measures on income distribution, inequality and poverty. This paper provides new equivalence scales based on revealed preference consumption microdata. We concentrate on single expenditure Engel equations and on a complete demand system, the extended linear expenditure system (ELES), with all interdependencies of a full market basket.Microdata base is the newest availabe West German Income and Consumption Sample of 1983 with more than 42,000 households. Our results with differences regarding the goods' basket and household composition effects are compared to other discussed consumption, expert, and subjective based equivalence scales.

Suggested Citation

  • Merz Joachim & Faik Jürgen, 1995. "Equivalence Scales Based on Revealed Preference Consumption Expenditures. The Case of Germany / Äquivalenzskalen auf der Basis von Konsumausgaben offenbarter Präferenzen. Ergebnisse für die Bundesrepu," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 214(4), pages 425-447, August.
    • Handle: RePEc:jns:jbstat:v:214:y:1995:i:4:p:425-447
    DOI: 10.1515/jbnst-1995-0405
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    Cited by:

    1. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2009. "Children, happiness and taxation," Econometica Working Papers wp12, Econometica.
    2. Kohn Karsten & Missong Martin, 2003. "Estimation of Quadratic Expenditure Systems Using German Household Budget Data / Schätzung Quadratischer Ausgabensysteme anhand der Daten der Einkommens- und Verbrauchsstichprobe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(4), pages 422-448, August.
    3. 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.

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