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Semiparametric Estimation of Lifetime Equivalence Scales

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  • Pendakur, K.

Abstract

Pashardes (1991) and Banks, Blundell and Preston (1994) use parametric methods to estimate lifetime equivalence scales. Their approaches put parametric restrictions on the differences in within-period expenditure needs across household types, the intertemporal allocation of expenditure, and the structure of within-period consumer demand systems. This paper puts parametric structure only on the differences in within-period expenditure needs across household types. This implies structure on the intertemporal allocation of expenditure, but leaves within-period consumer demand systems unrestricted.

Suggested Citation

  • Pendakur, K., 1999. "Semiparametric Estimation of Lifetime Equivalence Scales," Discussion Papers dp99-9, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp99-9
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    References listed on IDEAS

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    1. Pendakur, Krishna, 1998. "Semiparametric estimates and tests of base-independent equivalence scales," Journal of Econometrics, Elsevier, vol. 88(1), pages 1-40, November.
    2. Richard Blundell & Alan Duncan & Krishna Pendakur, 1998. "Semiparametric estimation and consumer demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 435-461.
    3. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-359, June.
    4. Keen, Michael, 1990. "Welfare analysis and intertemporal substitution," Journal of Public Economics, Elsevier, vol. 42(1), pages 47-66, June.
    5. Yiguo Sun & Thanasis Stengos & Dianqin Wang, 2006. "Estimates of semiparametric equivalence scales," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 629-639.
    6. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-221, May.
    7. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    8. Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-543, May.
    9. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
    10. Gozalo, Pedro L., 1997. "Nonparametric bootstrap analysis with applications to demographic effects in demand functions," Journal of Econometrics, Elsevier, vol. 81(2), pages 357-393, December.
    11. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
    12. Pashardes, Panos, 1991. "Contemporaneous and intertemporal child costs : Equivalent expenditure vs. equivalent income scales," Journal of Public Economics, Elsevier, vol. 45(2), pages 191-213, July.
    13. Donaldson, David & Pendakur, Krishna, 2004. "Equivalent-expenditure functions and expenditure-dependent equivalence scales," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 175-208, January.
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    Citations

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    Cited by:

    1. Ralf A. Wilke, 2006. "Semi-parametric estimation of consumption-based equivalence scales: the case of Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 781-802.
    2. Betti Gianni & Karadag Mehmet Ali & Sarica Ozlem & Ucar Baris, 2017. "Regional differences in equivalence scales in Turkey," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», vol. 13(1), pages 63-69.
    3. Martin Browning & Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2024. "Spouses with Benefits: on Match Quality and Consumption inside Households," Working Papers ECARES 2024-11, ULB -- Universite Libre de Bruxelles.
    4. Arthur Lewbel & Samuel Norris & Krishna Pendakur & Xi Qu, 2022. "Consumption peer effects and utility needs in India," Quantitative Economics, Econometric Society, vol. 13(3), pages 1257-1295, July.
    5. Gianni Betti, 2017. "Quantifying the economic cost of children: a note on intertemporal equivalence scales," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(3), pages 1197-1205, May.
    6. Elin Colmsjoe, 2024. "A Flying Start: The Long-Run Effects of Inter Vivos Transfers," CEBI working paper series 24-02, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    7. Takashi Unayama, 2006. "The Engel curve for alcohol and the rank of demand systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 1019-1038.

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    More about this item

    Keywords

    ESTIMATOR ; CONSUMPTION ; ECONOMETRICS;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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