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Estimation and Comparison of Two Simple Models of Equivalence Scales for the Cost of Children

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  • Tsakloglou, Panos

Abstract

The models of equivalence scales for the cost of children attributed to E. Engel (1895) and E. Rothbarth (1943) are presented and estimated using common demand structures on the data of the Greek Household Expenditure Survey. Further, the underlying assumptions of the models are tested. The empirical results suggest that the Engel scales are considerably higher than the Rothbarth scales. The underlying assumption of the Engel model (price independence of the scale) is rejected by the data, while that of the Rothbarth model (existence of goods on which children have income but not substitution effects) is not. Copyright 1991 by Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 101 (1991)
Issue (Month): 405 (March)
Pages: 343-57

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Handle: RePEc:ecj:econjl:v:101:y:1991:i:405:p:343-57

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Cited by:
  1. Alex Sienaert, 2008. "Some Child Cost Estimates for South Africa," CSAE Working Paper Series 2008-15, Centre for the Study of African Economies, University of Oxford.
  2. Merz, Joachim & Faik, Jürgen, 1994. "Equivalence Scales Based on Revealed Preference Consumption Expenditure Microdata - The Case of West Germany," MPRA Paper 16297, University Library of Munich, Germany.
  3. Merz, Joachim & Garner, Thesia & Smeeding, Timothy M. & Faik, Jürgen & Johnson, David, 1994. "Two Scales, One Methodology - Expenditure Based Equivalence Scales for the United States and Germany," MPRA Paper 7233, University Library of Munich, Germany.
  4. François Gardes & Christophe Starzec, 2004. "La question de l'identification des échelles d'équivalence : une estimation du coût de l'enfant sur des données de panel," Cahiers de la Maison des Sciences Economiques b04045, Université Panthéon-Sorbonne (Paris 1).
  5. Alex Sienaert, 2008. "Some Child Cost Estimates for South Africa," Economics Series Working Papers WPS/2008-15, University of Oxford, Department of Economics.
  6. Olivier Bargain & Olivier Donni, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," Working Papers 201001, School Of Economics, University College Dublin.
  7. 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.
  8. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents? Bargaining," CEPS/INSTEAD Working Paper Series 2010-30, CEPS/INSTEAD.
  9. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
  10. C. Andrea Bollino & Federico Perali & Nicola Rossi, 2000. "Linear household technologies," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(3), pages 275-287.

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