Assessing differences in household needs
A comparison of approaches for the estimation of equivalence scales using German expenditure data
Bibliographic Data
| ID | 21542011 |
|---|---|
| Authors | Christian Dudel (0000-0002-2985-6684, Max Planck Institute for Demographic Research), Jan Marvin Garbuszus (Ruhr University Bochum, corresponding author), Julian Schmied (0000-0001-5995-2901, Max Planck Institute for Demographic Research) |
| Year | 2021 |
| Volume | 60 |
| Issue | 4 |
| Pages | 1629-1659 |
| Publication date | 2021-04-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Empirical Economics (JOURNAL) |
| Journal identifiers | ISSN: 0377-7332 • E-ISSN: 1435-8921 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s00181-020-01822-6 |
| OpenAlex | W2790944179 |
| Language | EN |
| Citations received | 13 |
| References cited | 59 |
Equivalence scales are routinely applied to adjust the income of households of different sizes and compositions. Because of their practical importance for the measurement of inequality and poverty, a large number of methods for the estimation of equivalence scales have been proposed. Until now, however, no comprehensive comparison of current methods has been conducted. In this paper, we employ German household expenditure data to estimate equivalence scales using several parametric, semiparametric, and nonparametric approaches. Using a single dataset, we find that some approaches yield more plausible results than others while implausible scales are mostly based on linear Engel curves. The results we consider plausible are close to the modified OECD scale, and to the square root scale for larger households
Econometrics · Economics · Engel curve · Estimation · Geography · German · Nonparametric statistics · Parametric statistics · Price index · Statistics · Economics of Agriculture and Food Markets · Gender, Labor, and Family Dynamics · Income, Poverty, and Inequality · Mathematics
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| Unique citing works | 13 |
|---|---|
| Citations per year | 2,17 |
| Citation span | 2020 - 2026 (7) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 13 |