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Estimation and Comparison of Two Simple Models of Equivalence Scales for the Cost of Children


  • Tsakloglou, Panos


The models of equivalence scales for the cost of children attributed to E. Engel (1895) and E. Rothbarth (1943) are presented and estimated using common demand structures on the data of the Greek Household Expenditure Survey. Further, the underlying assumptions of the models are tested. The empirical results suggest that the Engel scales are considerably higher than the Rothbarth scales. The underlying assumption of the Engel model (price independence of the scale) is rejected by the data, while that of the Rothbarth model (existence of goods on which children have income but not substitution effects) is not. Copyright 1991 by Royal Economic Society.

Suggested Citation

  • Tsakloglou, Panos, 1991. "Estimation and Comparison of Two Simple Models of Equivalence Scales for the Cost of Children," Economic Journal, Royal Economic Society, vol. 101(405), pages 343-357, March.
  • Handle: RePEc:ecj:econjl:v:101:y:1991:i:405:p:343-57

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    References listed on IDEAS

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    Cited by:

    1. Masako Oyama, 2006. "Measuring cost of children using equivalence scale on Japanese panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 13(7), pages 409-415.
    2. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute for the Study of Labor (IZA).
    3. Merz, Joachim & Faik, Jürgen, 1994. "Equivalence Scales Based on Revealed Preference Consumption Expenditure Microdata - The Case of West Germany," MPRA Paper 16297, University Library of Munich, Germany.
    4. Arsenio M. Balisacan, 1992. "Equivalence Scale and Poverty Assessment in a Poor Country," UP School of Economics Discussion Papers 199204, University of the Philippines School of Economics.
    5. C. Andrea Bollino & Federico Perali & Nicola Rossi, 2000. "Linear household technologies," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(3), pages 275-287.
    6. François Gardes & Christophe Starzec, 2004. "La question de l'identification des échelles d'équivalence : une estimation du coût de l'enfant sur des données de panel," Cahiers de la Maison des Sciences Economiques b04045, Université Panthéon-Sorbonne (Paris 1).
    7. 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.
    8. Alex Sienaert, 2008. "Some Child Cost Estimates for South Africa," CSAE Working Paper Series 2008-15, Centre for the Study of African Economies, University of Oxford.
    9. Gerlinde Verbist & Wim Van Lancker, 2016. "Horizontal and Vertical Equity Objectives of Child Benefit Systems: An Empirical Assessment for European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(3), pages 1299-1318, September.
    10. Joachim Merz & Thesia Garner & Timothy M. Smeeding & Jürgen Faik & David Johnson, 1994. "Two Scales, One Methodology - Expenditure Based Equivalence Scales for the United States and Germany," FFB-Discussionpaper 08, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    11. 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, LISER.
    12. Alex Sienaert, 2008. "Some Child Cost Estimates for South Africa," Economics Series Working Papers WPS/2008-15, University of Oxford, Department of Economics.

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