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Adult Equivalence Scales, Inequality and Poverty

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  • John Creedy
  • Catherine Sleeman

Abstract

This paper examines the sensitivity of inequality and poverty measures to the adult equivalence scale and the unit of analysis. Comparisons are made using parametric equivalence scales, and income units include individuals, equivalent adults and households. The role of the correlation between equivalent income and household size, and the weight attached to children, is examined analytically. Empirical results are based on New Zealand Household Expenditure Survey (HES) data for total expenditure. Further results using a variety of equivalence scales, for New Zealand,Australia, the UK and the OECD, are examined.

Suggested Citation

  • John Creedy & Catherine Sleeman, 2005. "Adult Equivalence Scales, Inequality and Poverty," Department of Economics - Working Papers Series 938, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:938
    Note: This paper has now been published in: Creedy, J. and Sleeman, C. (2005) Adult Equivalence Scales, Inequality and Poverty, New Zealand Economic Papers, 39, no.1, pp. 51-83.
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    References listed on IDEAS

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    24. John Creedy & Rosanna Scutella, 2003. "The Role of the Unit of Analysis in Tax Policy Reform Evaluations," Melbourne Institute Working Paper Series wp2003n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    25. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
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    Citations

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    Cited by:

    1. John Creedy & Jesse Eedrah, 2016. "Income redistribution and changes in inequality in New Zealand from 2007 to 2011: Alternative distributions and value judgements," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(2), pages 129-152, August.
    2. Creedy, John & Quy, Ta, 2022. "Income Mobility in New Zealand 2007–2020: Combining Household Survey and Census Data," Working Paper Series 25797, Victoria University of Wellington, Chair in Public Finance.
    3. Nazila Alinaghi & John Creedy & Norman Gemmell, 2021. "Designing Personal Income Tax and Transfer Reforms: Alternative Modelling Approaches," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 445-461, December.
    4. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2022. "Income Inequality and the Accounting Period in New Zealand: Evidence from Administrative Data," Working Paper Series 21899, Victoria University of Wellington, Chair in Public Finance.
    5. John Creedy & Jamas Enright & Norman Gemmell & Nick McNabb, 2008. "Equity and Efficiency Measures of Tax-Transfer Systems: Some Evidence for New Zealand," Treasury Working Paper Series 08/04, New Zealand Treasury.
    6. Gianni Betti & Mehmet Ali Karadag & Ozlem Sarica & Baris Ucar, 2017. "How to Reduce the Impact of Equivalence Scales on Poverty Measurement: Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1023-1035, July.
    7. Creedy, John & Guest, Ross, 2008. "Population ageing and intertemporal consumption: Representative agent versus social planner," Economic Modelling, Elsevier, vol. 25(3), pages 485-498, May.
    8. John Creedy & Nicolas Hérault, 2011. "Decomposing Inequality and Social Welfare Changes: The Use of Alternative Welfare Metrics," Melbourne Institute Working Paper Series wp2011n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Hosung Shin & Han-A Cho & Bo-Ra Kim, 2021. "Dental Expenditure by Household Income in Korea over the Period 2008–2017: A Review of the National Dental Insurance Reform," IJERPH, MDPI, vol. 18(8), pages 1-11, April.
    10. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Designing Direct Tax Reforms: Alternative Approaches," Working Paper Series 9338, Victoria University of Wellington, Chair in Public Finance.
    11. Molini, Vasco & Nubé, Maarten & van den Boom, Bart, 2010. "Adult BMI as a Health and Nutritional Inequality Measure: Applications at Macro and Micro Levels," World Development, Elsevier, vol. 38(7), pages 1012-1023, July.
    12. Christopher Ball & John Creedy, 2015. "Inequality in New Zealand 1983/84 to 2013/14," Treasury Working Paper Series 15/06, New Zealand Treasury.
    13. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Designing Direct Tax Reforms: Alternative Approaches," Working Paper Series 21093, Victoria University of Wellington, Chair in Public Finance.
    14. John Creedy & Jesse Eedrah, 2014. "The Role of Value Judgements in Measuring Inequality," Treasury Working Paper Series 14/13, New Zealand Treasury.
    15. Creedy, John, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Working Paper Series 18784, Victoria University of Wellington, Chair in Public Finance.
    16. John Creedy & Jesse Eedrah, 2016. "Income redistribution and changes in inequality in New Zealand from 2007 to 2011: Alternative distributions and value judgements," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(2), pages 129-152, August.
    17. John Creedy, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Treasury Working Paper Series 13/11, New Zealand Treasury.
    18. John Creedy & Nicolas Hérault†, 2011. "Decomposing Inequality and Social Welfare Changes : The Use of Alternative Welfare Metrics," Department of Economics - Working Papers Series 1121, The University of Melbourne.
    19. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2022. "Inter-Decile Income Movements of Individuals in New Zealand: Evidence from Administrative Data," Working Paper Series 21357, Victoria University of Wellington, Chair in Public Finance.
    20. Omar Aziz & Norman Gemmell & Athene Laws, 2016. "Income and Fiscal Incidence by Age and Gender: Some Evidence from New Zealand," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 534-558, September.
    21. John Creedy, 2017. "Alternative Distributions for Inequality Comparisons," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(4), pages 484-497, December.
    22. Christopher Ball & John Creedy, 2015. "Inequality in New Zealand 1983/84 to 2013/14," Treasury Working Paper Series 15/06, New Zealand Treasury.

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    More about this item

    Keywords

    Inequality; poverty; equivalence scales; living standard; income unit;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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