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Some curiosites about the Engel method to estimate equivalence scales

Author

Listed:
  • Federico Perali

    (University of Verona)

Abstract

This paper lends legitimacy to the food share as an indicator of welfare by demonstrating the conditions necessary in empirical work for the Engel method of estimating equivalence scales to provide an exact measure of welfare. In analogy to a money metric of utility, the Engel's food share is shown to be a “quantity metric of utility.”

Suggested Citation

  • Federico Perali, 2002. "Some curiosites about the Engel method to estimate equivalence scales," Economics Bulletin, AccessEcon, vol. 4(9), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-01d10003
    as

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    File URL: http://www.accessecon.com/pubs/EB/2002/Volume4/EB-01D10003A.pdf
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    References listed on IDEAS

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    1. Panayiota Lyssiotou, 1997. "Comparison Of Alternative Tax And Transfer Treatment Of Children Using Adult Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 105-117, March.
    2. Lyssiotou, Panayiota, 1997. "Comparison of Alternative Tax and Transfer Treatment of Children Using Adult Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 105-117, March.
    3. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    4. Arthur Lewbel, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 1-18.
    5. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    6. Conniffe, Denis, 1992. "The Non-constancy of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(4), pages 429-443, December.
    7. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-744, August.
    8. Blundell,R. W. & Preston,Ian & Walker,Ian (ed.), 1994. "The Measurement of Household Welfare," Cambridge Books, Cambridge University Press, number 9780521451956.
    9. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-1475, September.
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    Cited by:

    1. Wiebke Kuklys, 2004. "A Monetary Approach to Capability Measurement of the Disabled - Evidence from the UK," Papers on Strategic Interaction 2004-08, Max Planck Institute of Economics, Strategic Interaction Group.
    2. Trevon D. Logan, 2011. "Economies Of Scale In The Household: Puzzles And Patterns From The American Past," Economic Inquiry, Western Economic Association International, vol. 49(4), pages 1008-1028, October.
    3. Perali, Federico, 2008. "The second Engel law: Is it a paradox?," European Economic Review, Elsevier, vol. 52(8), pages 1353-1377, November.
    4. Achille VERNIZZI & Elena SILETTI, 2004. "Estimating the cost of children through Engel curves by different good aggregates," Departmental Working Papers 2004-34, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    5. Jayasinghe, Maneka & Chai, Andreas & Ratnasiri, Shyama & Smith, Christine, 2017. "The power of the vegetable patch: How home-grown food helps large rural households achieve economies of scale & escape poverty," Food Policy, Elsevier, vol. 73(C), pages 62-74.

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    More about this item

    Keywords

    Engel method;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D6 - Microeconomics - - Welfare Economics

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