The estimation of pensioner equivalence scales using subjective data
AbstractThis paper uses panel data on pensioners’ subjective evaluations of their financial positions to construct equivalence scales for pensioners. A pensioner couple is estimated to require an income 44% higher than a comparable single pensioner to reach the same standard of living. This is significantly less than the equivalence scale value implied by the ratio of state pension rates, the McClements equivalence scale value and the scale value derived from Engel curve estimation for food expenditure using the same data source. The estimated equivalence scale value is robust to variations in the definition of the pensioner sample, the measurement of income and the econometric model used.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 893.
Length: 40 pages
Date of creation: 2009
Date of revision:
equivalence scales ; pensioner incomes ; pensions ; subjective data ; ordered response models ; Engel curves.;
Other versions of this item:
- Mark B. Stewart, 2009. "The Estimation Of Pensioner Equivalence Scales Using Subjective Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(4), pages 907-929, December.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-14 (All new papers)
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- Justin van de Ven & Nicolas Herault & Francisco Azpitarte, 2014. "Identifying Tax Implicit Equivalence Scales," Melbourne Institute Working Paper Series wp2014n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Aline Bütikofer & Michael Gerfin, 2009.
"The economies of scale of living together and how they are shared - Estimates based on a collective household model,"
dp0903, Universitaet Bern, Departement Volkswirtschaft.
- Bütikofer, Aline & Gerfin, Michael, 2009. "The Economies of Scale of Living Together and How They Are Shared: Estimates Based on a Collective Household Model," IZA Discussion Papers 4327, Institute for the Study of Labor (IZA).
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