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Equivalence Scale Relativities and the Extent of Inequality and Poverty*

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Author

Listed:
  • Coulter, Fiona A E
  • Cowell, Frank A
  • Jenkins, Stephen P

Abstract

Most inequality and poverty theory analyzes "equivalent income" distributions for homogeneous populations: incomes are assumed to be deflated by an equivalence scale that accounts for differences in needs between households. Yet in practice there is no consensus about what the appropriate equivalence scale is. The authors analyze how the choice of equivalence scale affects inequality and poverty measures, and show that there is a systematic relationship between equivalence scale generosity and the extent of inequality and poverty. They consider most of the measures in common use and provide some empirical illustrations. Copyright 1992 by Royal Economic Society.

Suggested Citation

  • Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    • Handle: RePEc:ecj:econjl:v:102:y:1992:i:414:p:1067-82
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    Replication

    This item has been replicated by:
  • Banks, James & Johnson, Paul, 1994. "Equivalence Scale Relativities Revisited," Economic Journal, Royal Economic Society, vol. 104(425), pages 883-890, July.

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