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Independent of a Base Equivalence Scales Estimation Using United States Micro-Level Data

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  • Julie A. Nelson

Abstract

Problems of identification of equivalence scales, on both philosophical and mathematical grounds, are discussed. Scales are estimated using an Almost Ideal Demand System and data from the 1980's United States Consumer Expenditure Survey. Resulting parameter estimates are reasonable for income and demographic effects, but the estimated price elasticities and the scales themselves are less appealing and less robust, especially since the validity of the scale estimates depends on strong assumptions about functional form.

Suggested Citation

  • Julie A. Nelson, 1993. "Independent of a Base Equivalence Scales Estimation Using United States Micro-Level Data," Annals of Economics and Statistics, GENES, issue 29, pages 43-63.
  • Handle: RePEc:adr:anecst:y:1993:i:29:p:43-63
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    Cited by:

    1. Kalwij, A.S. & Alessie, R.J.M. & Fontein, P.F., 1997. "Household Commodity Demand and Demographics in the Netherlands : A Micro-Economic Analysis," Other publications TiSEM 2acfcdb9-539a-4a0b-8eee-4, Tilburg University, School of Economics and Management.
    2. Jesus Fernández-Villaverde & Dirk Krueger, 2007. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 552-565, August.
    3. Garrett Anstreicher, 2020. "Family Formation and the Great Recession," Working Papers 20-42, Center for Economic Studies, U.S. Census Bureau.
    4. Bick, Alexander & Choi, Sekyu, 2011. "Life-cycle consumption: can single agent models get it right?," MPRA Paper 30910, University Library of Munich, Germany.

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