IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v12y2012i1n1.html
   My bibliography  Save this article

Demand-Based Cost-of-Children Estimates and Child Poverty

Author

Listed:
  • Garcia-Diaz Rocio

    (Tecnológico de Monterrey)

Abstract

This paper compares alternative demand-based equivalence scales for the cost of children to assess child poverty in Mexico. The models estimated here range from single-equation models, such as those of Engel and Rothbarth, to a complete demand system approach with fixed price effects. The results found in this study favor the generalization of the complete demand system equivalence scales over the other models. Despite the differences in the alternative models, the ranking of households with children and overall populations is insensitive to different equivalence scales and poverty lines used. However, variation in the composition of poor households with children has a different effect depending on the particular choice of equivalence scale. We found that, for households with more than the country's average number of children, poverty incidence is considerably higher than in the population as a whole.

Suggested Citation

  • Garcia-Diaz Rocio, 2012. "Demand-Based Cost-of-Children Estimates and Child Poverty," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-32, January.
    • Handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:n:1
    DOI: 10.2202/1935-1682.2657
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-1682.2657
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1935-1682.2657?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michelini, Claudio, 1999. "The estimation of a rank 3 demand system with demographic demand shifters from quasi-unit record data of household consumption," Economics Letters, Elsevier, vol. 65(1), pages 17-24, October.
    2. Koulovatianos, Christos & Schröder, Carsten & Schmidt, Ulrich, 2006. "Family-type subsistence incomes," Discussion Papers 2006/5, Free University Berlin, School of Business & Economics.
    3. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-221, May.
    4. Claudio Michelini, 2001. "Estimating the Cost of Children from New Zealand Quasi‐unit Record Data of Household Consumption," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 383-392, December.
    5. Bradbury, Bruce, 1994. "Measuring the Cost of Children," Australian Economic Papers, Wiley Blackwell, vol. 33(62), pages 120-138, June.
    6. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
    7. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany.
    8. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    9. Koulovatianos, Christos & Schröder, Carsten & Schmidt, Ulrich, 2006. "Family-type subsistence incomes," Discussion Papers 2006/5, Free University Berlin, School of Business & Economics.
    10. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    11. Ray, Ranjan, 1996. "Demographic Variables in Demand Systems: The Case for Generality," Empirical Economics, Springer, vol. 21(2), pages 307-315.
    12. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    13. Jin-Long Liu & Ching-Chun Hsu, 2004. "Economies of scale, gender discrimination, and cost of children," Applied Economics Letters, Taylor & Francis Journals, vol. 11(6), pages 377-382.
    14. Angus Deaton & Christina Paxson, 1997. "Poverty Among Children And The Elderly In Developing Countries," Working Papers 992, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    15. Bruce Bradbury, 2008. "Time And The Cost Of Children," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 305-323, September.
    16. Julie A. Nelson, 1992. "Methods Of Estimating Household Equivalence Scales: An Empirical Investigation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 295-310, September.
    17. Shelley A. Phipps, 1998. "What Is The Income "Cost Of A Child"? Exact Equivalence Scales For Canadian Two-Parent Families," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 157-164, February.
    18. Pashardes, Panos, 1995. "Equivalence scales in a rank-3 demand system," Journal of Public Economics, Elsevier, vol. 58(1), pages 143-158, September.
    19. 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 720-744, August.
    20. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
    21. repec:bla:ecorec:v:77:y:2001:i:239:p:383-92 is not listed on IDEAS
    22. repec:pri:crcwel:wp98-09-deaton is not listed on IDEAS
    23. Gronau, Reuben, 1991. "The Intrafamily Allocation of Goods--How to Separate the Adult from the Child," Journal of Labor Economics, University of Chicago Press, vol. 9(3), pages 207-235, July.
    24. Short, Kathleen, et al, 1998. "Poverty-Measurement Research Using the Consumer Expenditure Survey and the Survey of Income and Program Participation," American Economic Review, American Economic Association, vol. 88(2), pages 352-356, May.
    25. Bruce Bradbury, 2004. "The Price, Cost, Consumption and Value of Children," Labor and Demography 0402003, University Library of Munich, Germany.
    26. J. L. Nicholson, 1976. "Appraisal Of Different Methods Of Estimating Equivalence Scales And Their Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 22(1), pages 1-11, March.
    27. Jean O. Lanjouw & Peter Lanjouw & Branko Milanovic & Stefano Paternostro, 2004. "Relative price shifts, economies of scale and poverty during economic transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 509-536, September.
    28. Deaton, Angus S, 1989. "Looking for Boy-Girl Discrimination in Household Expenditure Data," The World Bank Economic Review, World Bank, vol. 3(1), pages 1-15, January.
    29. repec:bla:devpol:v:24:y:2006:i:5:p:537-552 is not listed on IDEAS
    30. Geoffrey Lancaster & Ranjan Ray, 1998. "Comparison of Alternative Models of Household Equivalence Scales: The Australian Evidence on Unit Record Data," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 1-14, March.
    31. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    32. Atkinson, A B & Gomulka, J & Stern, N H, 1990. "Spending on Alcohol: Evidence from the Family Expenditure Survey 1970-1983," Economic Journal, Royal Economic Society, vol. 100(402), pages 808-827, September.
    33. repec:ucf:inreca:inreca05/9 is not listed on IDEAS
    34. repec:pri:rpdevs:deaton_paxson_poverty_children_paper is not listed on IDEAS
    35. Ranjan Ray, 2000. "Poverty and expenditure pattern of households in Pakistan and South Africa: a comparative study," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(2), pages 241-256.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Dudel & Jan Marvin Garbuszus & Julian Schmied, 2021. "Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data," Empirical Economics, Springer, vol. 60(4), pages 1629-1659, April.
    2. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany.
    3. Bargain, Olivier B. & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute of Labor Economics (IZA).
    4. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents’ Bargaining," LISER Working Paper Series 2010-30, Luxembourg Institute of Socio-Economic Research (LISER).
    5. Geoffrey Lancaster & Ranjan Ray, 1998. "Comparison of Alternative Models of Household Equivalence Scales: The Australian Evidence on Unit Record Data," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 1-14, March.
    6. Alois Guger & Reiner Buchegger & Hedwig Lutz & Christine Mayrhuber & Michael Wüger, 2003. "Schätzung der direkten und indirekten Kinderkosten," WIFO Studies, WIFO, number 24078, April.
    7. Rodríguez Biasone, Juan Ignacio, 2019. "Gastos de consumo de las familias y el costo de los niños," Nülan. Deposited Documents 3150, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    8. Bruce Bradbury, 1996. "Household Income Sharing, Joint Consumption and the Expenditure Patterns of Australian Retired Couples and Single People," Discussion Papers 0066, University of New South Wales, Social Policy Research Centre.
    9. Majumder, Amita & Chakrabarty, Manisha, 2003. "Relative cost of children: the case of rural Maharashtra, India," Journal of Policy Modeling, Elsevier, vol. 25(1), pages 61-76, January.
    10. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
    11. Mauro Maltagliati & Gustavo Santis, 2001. "De gustibus non est disputandum? A new approach to the estimation of equivalence scales," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 10(1), pages 211-236, January.
    12. Pashardes, Panos, 1995. "Equivalence scales in a rank-3 demand system," Journal of Public Economics, Elsevier, vol. 58(1), pages 143-158, September.
    13. Laura Blow, 2003. "Demographics in demand systems," IFS Working Papers W03/18, Institute for Fiscal Studies.
    14. Bruce Bradbury, 1995. "Household Semi-Public Goods and the Estimation of Consumer Equivalence Scales: Some First Steps," Microeconomics 9508001, University Library of Munich, Germany.
    15. Braha, Kushtrim & Cupak, Andrej & Qineti, Artan & Pokrivcak, Jan, 2018. "Food Demand System in Transition Economies: Evidence from Kosovo," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272050, European Association of Agricultural Economists.
    16. Tarek Atalla, Simona Bigerna, Carlo Andrea Bollino, and Rolando Fuentes, 2017. "Analyzing the Effects of Renewable Energy and Climate Conditions on Consumer Welfare," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    17. Raziye Selim & Gizem Kaya, 2018. "The Changes of Cost of Children for Turkey by Using Income-Dependent Equivalence Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 803-824, September.
    18. Korir, Lilian & Rizov, Marian & Ruto, Eric, 2020. "Food security in Kenya: Insights from a household food demand model," Economic Modelling, Elsevier, vol. 92(C), pages 99-108.
    19. Betti Gianni & Karadag Mehmet Ali & Sarica Ozlem & Ucar Baris, 2017. "Regional differences in equivalence scales in Turkey," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», vol. 13(1), pages 63-69.
    20. Trevon D. Logan, 2011. "Economies Of Scale In The Household: Puzzles And Patterns From The American Past," Economic Inquiry, Western Economic Association International, vol. 49(4), pages 1008-1028, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.