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Equivalence scales and inequality

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  • Cowell, Frank
  • Mercader-Prats, Magda

Abstract

At the heart of any distributional analysis there is the problem of allowing for differences in people's non-income characteristics. We examine the role of standard equivalence scales in distributional comparisons and the welfare implications of the basis for constructing equivalence scales. We consider the use of alternative approaches that do not require the specification of a single scale and implement one of these in practical comparison of Spain and the UK.

Suggested Citation

  • Cowell, Frank & Mercader-Prats, Magda, 1999. "Equivalence scales and inequality," LSE Research Online Documents on Economics 2190, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:2190
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    File URL: http://eprints.lse.ac.uk/2190/
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    More about this item

    Keywords

    Inequality; social welfare; equivalence scales;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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