Adult Equivalence Scales, Inequality and Poverty
نویسندگان
چکیده
This paper examines the sensitivity of inequality and poverty measures to the adult equivalence scale and the unit of analysis. Comparisons are made using parametric equivalence scales, and income units include individuals, equivalent adults and households. The role of the correlation between equivalent income and household size, and the weight attached to children, is examined analytically. Empirical results are based on New Zealand Household Expenditure Survey (HES) data for total expenditure. Further results using a variety of equivalence scales, for New Zealand, Australia, the UK and the OECD, are examined. JEL Classification D31, D63, H23, I31, I32
منابع مشابه
EQUIVALENCE SCALES Entry for The New Palgrave Dictionary of Economics, 2nd edition
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 econo...
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