Demographic Demand Systems With Application To Equivalence Scales Estimation And Inequality Analysis: The Australian Evidence
AbstractThis paper proposes and applies an alternative demographic procedure for extending a demand system to allow for the effect of household size and composition changes, along with price changes, on expenditure allocation. The demographic procedure is applied to two recent demand functional forms to obtain their estimable demographic extensions. The estimation on pooled time series of Australian Household Expenditure Surveys yields sensible and robust estimates of the equivalence scale, and of its variation with relative prices. Further evidence on the usefulness of this procedure is provided by using it to evaluate the nature and magnitude of the inequality bias of relative price changes in Australia over a period from the late 1980s to the early part of the new millennium. Copyright 2010 The Authors. Australian Economic Papers 2010 Blackwell Publishing Ltd/University of Adelaide and Flinders University .
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Australian Economic Papers.
Volume (Year): 49 (2010)
Issue (Month): 3 (09)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X
Other versions of this item:
- Blacklow, Paul & Nicholas, Aaron & Ray, Ranjan, 2008. "Demographic demand systems with application to equivalence scales estimation and inequality analysis: the Australian evidence," Working Papers 9289, University of Tasmania, School of Economics and Finance, revised 01 Dec 2008.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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