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Comparison of Alternative Tax and Transfer Treatment of Children Using Adult Equivalence Scales

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  • Lyssiotou, Panayiota
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    Abstract

    This paper estimates adult equivalence scales in the context of a nonlinear demand system using cross-section individual household data. It then evaluates the treatment of children under the tax allowance and child benefit systems on the basis of the estimated equivalence scales. The results suggest that a child benefit system allowing for economies of scale in the family is consistent with the cost of children implied by the notion of adult equivalence scale. Copyright 1997 by The International Association for Research in Income and Wealth.

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    Bibliographic Info

    Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

    Volume (Year): 43 (1997)
    Issue (Month): 1 (March)
    Pages: 105-17

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    Handle: RePEc:bla:revinw:v:43:y:1997:i:1:p:105-17

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    Cited by:
    1. Stengos, T. & Sun, Y. & Wang, D., 2003. "Estimates of Semiparametric Equivalence Scales," Working Papers 2003-7, University of Guelph, Department of Economics and Finance.
    2. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Reforms of Environmental Policies in the Presence of Cross-border Pollution and Two-stage Clean-up," CESifo Working Paper Series 638, CESifo Group Munich.
    3. Lyssiotou, Panayiota, 2008. "Comparisons of poverty across periods: Significance of distributional effects of prices," Economics Letters, Elsevier, vol. 99(1), pages 14-17, April.
    4. Christos Koulovatianos & Carsten Schröder & Ulrich Schmidt, 2005. "Properties of Equivalence Scales in Different Countries," Vienna Economics Papers 0503, University of Vienna, Department of Economics.
    5. Panos Pashardes & Soteroula Hajispyrou, 2002. "Consumer Demand and Welfare under Increasing Block Pricing," University of Cyprus Working Papers in Economics 0207, University of Cyprus Department of Economics.
    6. Michael Haliassos, 2002. "Stockholding: Recent Lessons from Theory and Computations," University of Cyprus Working Papers in Economics 0206, University of Cyprus Department of Economics.
    7. Federico Perali, 2002. "Some curiosites about the Engel method to estimate equivalence scales," Economics Bulletin, AccessEcon, vol. 4(9), pages 1-7.

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