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Household Equivalence Scales and Interpersonal Comparisons

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  • Fisher, Franklin M
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    Abstract

    Recent papers have used household equivalence scales to construct measures of welfare inequality. Th is procedure rests on an often implicit value judgment, namely, that if, after adjustment for demographic characteristics, two households are on the same indifference curve, they are equally well off. That v alue judgment is not compelling, and there are situations in which it is ethically repugnant. This is particularly likely if tastes are fu nctions of past experience and income. Copyright 1987 by The Review of Economic Studies Limited.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Review of Economic Studies.

    Volume (Year): 54 (1987)
    Issue (Month): 3 (July)
    Pages: 519-24

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    Handle: RePEc:bla:restud:v:54:y:1987:i:3:p:519-24

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    Cited by:
    1. Majumder, Amita & Chakrabarty, Manisha, 2003. "Relative cost of children: the case of rural Maharashtra, India," Journal of Policy Modeling, Elsevier, vol. 25(1), pages 61-76, January.
    2. Kapteyn, A.J., 1994. "The measurement of household cost functions: Revealed preference versus subjective measures," Discussion Paper 1994-3, Tilburg University, Center for Economic Research.
    3. Lambert, Peter J & Ramos, Xavier, 2002. "Welfare Comparisons: Sequential Procedures for Heterogeneous Populations," Economica, London School of Economics and Political Science, vol. 69(276), pages 549-62, November.
    4. Paolo Liberati, 2001. "The Distributional Effects of Indirect Tax Changes in Italy," International Tax and Public Finance, Springer, vol. 8(1), pages 27-51, January.
    5. Jones, Andrew & O'Donnell, Owen, 1995. "Equivalence scales and the costs of disability," Journal of Public Economics, Elsevier, vol. 56(2), pages 273-289, February.
    6. Frank Cowell & Magda Mercader-Prats, 1999. "Equivalence scales and inequality," LSE Research Online Documents on Economics 2190, London School of Economics and Political Science, LSE Library.
    7. Stefan Mann, 2007. "Comparing Interpersonal Comparisons in Utility Theory and Happiness Research," Forum for Social Economics, Taylor & Francis Journals, vol. 36(1), pages 29-42, January.
    8. Frank A Cowell & Magda Mercader-Prats, 1997. "Equivalence of Scales and Inequality (published in Income Inequality Measurement:From Theory to Practice, J Silber (ed), Dewenter: Kluver (1999)," STICERD - Distributional Analysis Research Programme Papers 27, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    9. Palme, Mårten, 1994. "Income Distribution Effects of the Swedish 1991 Tax Reform: An Analysis of a Microsimulation Using Generalized Kakwani Decomposition," Working Paper Series in Economics and Finance 5, Stockholm School of Economics.
    10. Sourushe Zandvakili, 2008. "Advances in Inequality Measurement and Usefulness of Statistical Inference," Forum for Social Economics, Springer, vol. 37(2), pages 135-145, August.
    11. Bourguignon, François, 1993. "Individus, familles et bien-être social," L'Actualité Economique, Société Canadienne de Science Economique, vol. 69(4), pages 243-258, décembre.

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