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Non-linearities and Equivalence Scales

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  • Dickens, Richard
  • Fry, Vanessa
  • Pashardes, Panos

Abstract

This paper focuses on the estimation and testing of equivalence scales in the context of a demand system with nonline ar logarithmic expenditure effects in its budget-share equations. The authors show that such nonlinearity enables one to identify the scal es without demographic separability restrictions on preferences and to avoid false rejection of the hypothesis that the scales are independ ent of the base utility level. The empirical analysis is based on micro data drawn from the U.K. Family Expenditure Survey. Copyright 1993 by Royal Economic Society.

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Bibliographic Info

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

Volume (Year): 103 (1993)
Issue (Month): 417 (March)
Pages: 359-68

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Handle: RePEc:ecj:econjl:v:103:y:1993:i:417:p:359-68

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Cited by:
  1. 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.
  2. Michael Haliassos, 2002. "Stockholding: Recent Lessons from Theory and Computations," University of Cyprus Working Papers in Economics 0206, University of Cyprus Department of Economics.
  3. Valerie Lechene & Martin Browning, 2002. "Children and Demand: Direct and Non-Direct Effects," Economics Series Working Papers 16, University of Oxford, Department of Economics.
  4. Blacklow, Paul & Cooper, Russell & Ham, Roger & McLaren, Keith, 2007. "A Regular Demand System with Commodity-Specific Demographic Effects," Working Papers 818, University of Tasmania, School of Economics and Finance.
  5. Hatzipanayotou, Panos & Sajal Lahiri & Michael S.Michael, 2002. "Reforms of Environmental Policies in the presence of Cross-border Pollution and Two-stage Clean-up," Royal Economic Society Annual Conference 2002 97, Royal Economic Society.
  6. J. V. Meenakshi & Ranjan Ray, 1999. "Regional differences in India's food expenditure pattern: a complete demand systems approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(1), pages 47-74.
  7. Schröder, Carsten & Bönke, Timm, 2012. "Country inequality rankings and conversion schemes," Economics Discussion Papers 2012-7, Kiel Institute for the World Economy.
  8. 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.

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