Equivalence Scales in an Intertemporal Setting with an Application to the Former West Germany
AbstractEquivalence scales provide answers to questions like how much a household with two children needs to spend compared to a couple to attain the same welfare level. These are important questions for child allowances, social benefits and to assess the cost of children over the life-cycle for example. We discuss equivalence scales in an intertemporal setting with uncertainty. To estimate equivalence scales we use a panel from German households (GSOEP) containing subjective data on satisfaction with life and satisfaction with income to represent the welfare level. Because satisfaction is measured on a discrete scale we use limited dependent variable models for panel data in estimation. Using satisfaction with life data we find that larger households do not need any additional income to be as satisfied as a couple. Using satisfaction with income, however, yields equivalence scales that increase with household size. Copyright 2002 by The International Association for Research in Income and Wealth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.
Volume (Year): 48 (2002)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6586
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bütikofer, Aline & Gerfin, Michael, 2009.
"The Economies of Scale of Living Together and How They Are Shared: Estimates Based on a Collective Household Model,"
IZA Discussion Papers
4327, Institute for the Study of Labor (IZA).
- Aline Bütikofer & Michael Gerfin, 2009. "The economies of scale of living together and how they are shared - Estimates based on a collective household model," Diskussionsschriften dp0903, Universitaet Bern, Departement Volkswirtschaft.
- Jurgen Faik, 2013. "Cross-sectional and longitudinal equivalence scales for West Germany based on subjective data on life satisfaction," Working Papers 306, ECINEQ, Society for the Study of Economic Inequality.
- Michael Ahlheim & Ulrike Lehr, 2008. "Equity and Aggregation in Environmental Valuation," Diskussionspapiere aus dem Institut fÃ¼r Volkswirtschaftslehre der UniversitÃ¤t Hohenheim 295/2008, Department of Economics, University of Hohenheim, Germany.
- Christian Dudel & Notburga Ott & Martin Werding, 2013.
"Maintaining One's Living Standard at Old Age - What Does That Mean?: Evidence Using Panel Data from Germany,"
SOEPpapers on Multidisciplinary Panel Data Research
563, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Christian Dudel & Notburga Ott & Martin Werding, 2013. "Maintaining One's Living Standard at Old Age: What Does that Mean? Evidence Using Panel Data from Germany," CESifo Working Paper Series 4223, CESifo Group Munich.
- Jürgen Faik, 2013. "Cross-Sectional and Longitudinal Equivalence Scales for West Germany Based on Subjective Data on Life Satisfaction: Paper Presented at the Fifth Meeting of the Society for the Study of Economic Inequa," SOEPpapers on Multidisciplinary Panel Data Research 575, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Jean-Marc Falter, 2006. "Equivalence Scales and Subjective Data in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(II), pages 263-284, June.
- Bollinger, Christopher R. & Nicoletti, Cheti & Pudney, Stephen, 2012.
"Two can live as cheaply as one... but three's a crowd,"
ISER Working Paper Series
2012-10, Institute for Social and Economic Research.
- Christopher R. Bollinger & Cheti Nicoletti & Stephen Pudney, 2012. "Two can live as cheaply as one... But three's a crowd," Discussion Papers 12/23, Department of Economics, University of York.
- Masako Oyama, 2006. "Measuring cost of children using equivalence scale on Japanese panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 13(7), pages 409-415.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.