EQUIVALENCE SCALES Entry for The New Palgrave Dictionary of Economics, 2nd edition
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چکیده
An equivalence scale is a measure of the cost of living of a household of a given size and demographic composition, relative to the cost of living of a reference household (usually a single adult), when both households attain the same level of utility or standard of living. Equivalence scales are dif cult to construct because household utility cannot be directly measured, which results in economic identi cation problems. Applications of equivalence scales include: measurement of social welfare, economic inequality, poverty, and costs of children; indexing payments for social bene ts, life insurance, alimony, and legal compensation for wrongful death.
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Experimental economics, history of This is a slightly longer version of an entry prepared for the 2nd edition of The New Palgrave Dictionary of Economics, edited by Steven Durlauf and Lawrence Blume
This is a slightly longer version of an entry prepared for the 2nd edition of The New Palgrave Dictionary of Economics, edited by Steven Durlauf and Lawrence Blume (Palgrave-Macmillan, forthcoming). Since the New Palgrave does not include acknowledgments, I should use this chance to thank Roger Backhouse, Philippe Fontaine, Daniel Kahneman, Kyu Sang Lee, Ivan Moscati, and Vernon Smith for their...
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