Identifiability of Household Equivalence Scales through Exact Aggregation: Some Empirical Results
General and commodity-specific equivalence scales are estimated with Canadian microdata. The former are identifiable when exact aggregation is imposed. However, these identifiability restrictions can be tested, as can homogeneity and symmetry in the model employed here. Exact aggregation is not rejected but homogeneity and symmetry are. The estimated equivalence scales exhibit increasing returns to scale in family size. They also rise with age, exhibit strong regional effects, and rural households' scales are generally lower than those of urban households. Since scales are sensitive to imposing homogeneity and symmetry restrictions, caution should be exercised in using such equivalence scales for policy purposes.
Volume (Year): 27 (1994)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4|
Web page: http://economics.ca/cje/
More information through EDIRC
|Order Information:|| Web: http://economics.ca/en/membership.php Email: |
When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:27:y:1994:i:2:p:307-28. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler)
If references are entirely missing, you can add them using this form.