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Equivalence scales and inequality

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  • Frank Cowell
  • Magda Mercader-Prats

Abstract

At the heart of any distributional analysis there is the problem of allowing for differences in people's non-income characteristics. We examine the role of standard equivalence scales in distributional comparisons and the welfare implications of the basis for constructing equivalence scales. We consider the use of alternative approaches that do not require the specification of a single scale and implement one of these in practical comparison of Spain and the UK.

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File URL: http://eprints.lse.ac.uk/2190/
File Function: Open access version.
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 2190.

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Length: 35 pages
Date of creation: Mar 1999
Date of revision:
Handle: RePEc:ehl:lserod:2190

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Related research

Keywords: Inequality; social welfare; equivalence scales;

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References

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  1. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  2. Ebert U., 1996. "Income inequality and differences in household size," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 57-58, February.
  3. Lanjouw, Peter & Ravallion, Martin & DEC, 1994. "Poverty and household size," Policy Research Working Paper Series 1332, The World Bank.
  4. Jenkins, Stephen P & Cowell, Frank A, 1994. "Parametric Equivalence Scales and Scale Relativities," Economic Journal, Royal Economic Society, vol. 104(425), pages 891-900, July.
  5. Muellbauer, John, 1974. "Household composition, Engel curves and welfare comparisons between households : A duality approach," European Economic Review, Elsevier, vol. 5(2), pages 103-122, August.
  6. José Sastre Descals & Réjane Hugounenq, 1993. "Quelques réflexions pour une simplification de l'IRPP," Économie et Prévision, Programme National Persée, vol. 110(4), pages 23-34.
  7. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
  8. Cowell, Frank A, 1984. "The Structure of American Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(3), pages 351-75, September.
  9. Ringen, Stein, 1991. "Households, Standard of Living, and Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(1), pages 1-13, March.
  10. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
  11. Atkinson, A B, 1992. "Measuring Poverty and Differences in Family Composition," Economica, London School of Economics and Political Science, vol. 59(233), pages 1-16, February.
  12. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-75, December.
  13. Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-56, December.
  14. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
  15. Glewwe, Paul, 1991. "Household equivalence scales and the measurement of inequality : Transfers from the poor to the rich could decrease inequality," Journal of Public Economics, Elsevier, vol. 44(2), pages 211-216, March.
  16. Fisher, Franklin M, 1987. "Household Equivalence Scales and Interpersonal Comparisons," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 519-24, July.
  17. 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 720-44, August.
  18. José Sastre Descals & Réjane Hugounenq, 1991. "Effets redistributifs de la contribution sociale généralisée," Économie et Prévision, Programme National Persée, vol. 98(2), pages 21-32.
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Cited by:
  1. Guillermo Cruces & Quentin Wodon, 2003. "Argentina's crises and the poor, 1995-2002," LSE Research Online Documents on Economics 6551, London School of Economics and Political Science, LSE Library.
  2. Kuklys, W. & Robeyns, I., 2004. "Sen’s Capability Approach to Welfare Economics," Cambridge Working Papers in Economics 0415, Faculty of Economics, University of Cambridge.
  3. Wiebke Kuklys & Ingrid Robeyns, 2004. "Sens's Capability Approach to Welfare Economics," Papers on Strategic Interaction 2004-03, Max Planck Institute of Economics, Strategic Interaction Group.

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