Impact of estimated equivalence scale arising from alternative approaches on income indicators in the Czech Republic
Bibliographic Data
| ID | 12007700 |
|---|---|
| Authors | Michaela Jirková (Prague University of Economics and Business), Petr Musil (0000-0001-8147-4336, Prague University of Economics and Business, corresponding author), Jakub Fischer (0000-0003-4658-1974, Prague University of Economics and Business) |
| Year | 2021 |
| Volume | 63 |
| Issue | 1 |
| Pages | 307-320 |
| Publication date | 2021-05-05 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Social Science Journal (JOURNAL) |
| Journal identifiers | ISSN: 0362-3319 • E-ISSN: 1873-5355 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/03623319.2021.1914535 |
| OpenAlex | W3159661507 |
| Language | EN |
| References cited | 11 |
Household well-being represents a very complex concept that allows interpretation from many perspectives such as income, wealth and environment. Poverty constitutes an aspect thereof and refers to people suffering from a lack of basic needs. Poverty is defined and measured in various ways. The approach employed in developed countries appeals to relative poverty. The poverty line is set at 60% of the national median of income. Social and demographic characteristics of households are taken into account when the equivalence scale of consumption units is used. International scales may prove inadequate for local conditions in the Czech Republic. The paper aims to estimate an appropriate scale that describes specific economies of scale of Czech households. Alternative approaches to the consumption unit scale applied in some countries arise from household expenditures. Such a method could use data from Household Budget Surveys (HBS). Another method uses the utility function of households, indirectly measured by means of subjective data of financial satisfaction. The analysis is based on data from European Income and Living Conditions Surveys (SILC). Consumption units prepared according to both approaches use regression for the estimation. Subsequently, the impact of different equivalence scales of consumption units on poverty indicators is assessed for individual types of households. The results show that the estimated scales differ from scales designed by international institutions. This paper focuses primarily on the situation in the Czech Republic but provides some comparison to other European countries as well
Consumption (sociology · Czech · Demographic economics · Development economics · Econometrics · Economic growth · Economics · Equivalence (formal languages · Geography · Macroeconomics · National accounts · Poverty · Public economics · Scale (ratio · Sociology · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality · Mathematics
| Citation velocity | historical |
|---|---|
| Highly cited | No |