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Noncash Income, Equivalence Scales, And The Measurement Of Economic Well‐Being

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  • Daniel B. Radner

Abstract

Little attention has been paid to the importance of consistency between the specifications of the income and the equivalence scales used in measuring economic well‐being when noncash income is included in the definition of income. This article finds that inconsistency between the income and needs sides of a comparison can be important when some types of noncash income are included. An upward bias in the measured economic status of the aged when Medicare is included in income and an ordinary equivalence scale is used is presented as an example of the important effects of this consistency problem.

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  • Daniel B. Radner, 1997. "Noncash Income, Equivalence Scales, And The Measurement Of Economic Well‐Being," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 71-88, March.
    • Handle: RePEc:bla:revinw:v:43:y:1997:i:1:p:71-88
    DOI: 10.1111/j.1475-4991.1997.tb00201.x
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    Cited by:

    1. Alari Paulus & Holly Sutherland & Panos Tsakloglou, 2010. "The distributional impact of in-kind public benefits in European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 243-266.
    2. Alois Guger & Silvia Rocha-Akis, 2016. "Umverteilung durch den Staat in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(5), pages 329-345, May.
    3. DECANCQ, Koen & FLEURBAEY, Marc & SCHOKKAERT, Erik, 2014. "Inequality, income, and well-being," LIDAM Discussion Papers CORE 2014018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Callan, Tim & Keane, Claire, 2009. "Non-cash Benefits and the Distribution of Economic Welfare," The Economic and Social Review, Economic and Social Studies, vol. 40(1), pages 49-71.
    5. Laura Bianchini & Santino Piazza & Alberto Cassone, 2017. "The distributional impact of health public expenditure in Italian regions: what happens when cost-effectiveness and quality matter?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 445-469, December.
    6. Gerlinde Verbist & Michael Föster & Vaalavou, M., 2013. "GINI DP 74: The Impact of Publicly Provided Services on the Distribution of Resources: Review of New Results and Methods," GINI Discussion Papers 74, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Christos Koutsampelas & Panos Tsakloglou, 2013. "The distribution of full income in Greece," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(4), pages 311-330, March.
    8. Aaberge, Rolf & Eika, Lasse & Langørgen, Audun & Mogstad, Magne, 2019. "Local governments, in-kind transfers, and economic inequality," Journal of Public Economics, Elsevier, vol. 180(C).
    9. Christina Behrendt, 2000. "Is There Income Poverty in Western Europe? Methodological Pitfalls in the Measurement of Poverty in a Comparative Perspective," LIS Working papers 258, LIS Cross-National Data Center in Luxembourg.
    10. Ron Crawford & Grant Johnston, 2004. "Household incomes in New Zealand: The impact of the market, taxes and government spending, 1987/88–1997/98," Treasury Working Paper Series 04/20, New Zealand Treasury.
    11. Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Statistics Norway, Research Department.
    12. Christopher Johnson, 2007. "A Re-count of Poverty in US Central Cities: Just Who and Where Are the Urban Poor?," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2283-2303, November.
    13. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI).
    14. Aaberge, Rolf & Bhuller, Manudeep & Langørgen, Audun & Mogstad, Magne, 2010. "The distributional impact of public services when needs differ," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 549-562, October.
    15. Verbist, G. (Gerlinde) & Matsaganis, M. (Manos), 2012. "GINI DP 53: The Redistributive Capacity of Services in the EU," GINI Discussion Papers 53, AIAS, Amsterdam Institute for Advanced Labour Studies.

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