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Adult Equivalence Scales, Inequality and Poverty in New Zealand

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Author Info
John Creedy
Catherine Sleeman () (New Zealand Treasury)
Abstract

This paper examines the sensitivity of inequality and poverty measures to the choice of adult equivalence scales and the type of income unit examined. Comparisons are made using parametric equivalence scales, and income units include individuals, equivalent adults and households. The results are based on HES data for total expenditure. A variety of equivalence scales, for New Zealand, Australia, the UK and the OECD are examined. The implications of varying the poverty line are also considered.

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File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2004/04-21/twp04-21.pdf
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Publisher Info
Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 04/21.

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Length: 37 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:nzt:nztwps:04/21

Contact details of provider:
Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
Phone: +64-4-472 2733
Fax: +64-4-473 0982
Web page: http://www.treasury.govt.nz
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Related research
Keywords: Inequality poverty equivalence scales living standard income unit

Find related papers by 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 and Poverty - - - General Welfare
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. Banks, James & Johnson, Paul, 1994. "Equivalence Scale Relativities Revisited," Economic Journal, Royal Economic Society, vol. 104(425), pages 883-90, July. [Downloadable!] (restricted)
  3. Cowell, Frank A, 1984. "The Structure of American Income Inequality," Review of Income and Wealth, Blackwell Publishing, vol. 30(3), pages 351-75, September.
  4. Decoster, Andre & Schokkaert, Erik & Van Camp, Guy, 1997. "Is redistribution through indirect taxes equitable?," European Economic Review, Elsevier, vol. 41(3-5), pages 599-608, April. [Downloadable!] (restricted)
  5. Orazio P. Attanasio & Tullio Jappelli, 2000. "The life cycle hypothesis and consumption inequality," IFS Working Papers W97/17, Institute for Fiscal Studies.
  6. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September. [Downloadable!] (restricted)
  7. Richard Blundell & Ian Preston, 1994. "Income or consumption in the measurement of inequality and poverty?," IFS Working Papers W94/12, Institute for Fiscal Studies.
  8. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, Blackwell Publishing, vol. 25(4), pages 365-75, December.
  9. Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May. [Downloadable!] (restricted)
  10. Creedy, John, 1997. "Labour Supply and Social Welfare When Utility Depends on a Threshold Consumption Level," The Economic Record, The Economic Society of Australia, vol. 73(221), pages 159-68, June.
  11. André Decoster & Erwin Ooghe, 2002. "Weighting with individuals, equivalent individuals, or not weighting at all. Does it matter empirically?," Public Economics Working Paper Series ces0215, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics. [Downloadable!]
  12. 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. [Downloadable!] (restricted)
  13. Creedy, John & van de Ven, Justin, 2001. "Decomposing Redistributive Effects of Taxes and Transfers in Australia: Annual and Lifetime Measures," Australian Economic Papers, Blackwell Publishing, vol. 40(2), pages 185-98, June. [Downloadable!] (restricted)
  14. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  15. Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-44, May. [Downloadable!] (restricted)
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