Semiparametric estimation of lifetime equivalence scales
Pashardes (1991) and Banks et al. (1994) use parametric methods to estimate lifetime equivalence scales. Their approaches put parametric restrictions on the differences in within-period expenditure needs across household types, the intertemporal allocation of expenditure, and the shapes of commodity demand equations. This paper puts parametric structure only on the differences in within-period expenditure needs across household types. This implies structure on the intertemporal allocation of expenditure, but leaves the shapes of commodity demand equations unrestricted. Semiparametric methods are used to estimate within-period and lifetime equivalence scales with Canadian expenditure data, and to test the restrictions imposed on within-period expenditure functions. Estimated lifetime equivalence scales are similar in size to those estimated by Banks et al. (1994) and exhibit equal lifetime costs for first and second children. Copyright © 2005 John Wiley & Sons, Ltd.
Volume (Year): 20 (2005)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.interscience.wiley.com/jpages/0883-7252/|
|Order Information:|| Web: http://www3.interscience.wiley.com/jcatalog/subscribe.jsp?issn=0883-7252 Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gozalo, Pedro L., 1997. "Nonparametric bootstrap analysis with applications to demographic effects in demand functions," Journal of Econometrics, Elsevier, vol. 81(2), pages 357-393, December.
- Keen, Michael, 1990. "Welfare analysis and intertemporal substitution," Journal of Public Economics, Elsevier, vol. 42(1), pages 47-66, June.
- Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-43, May.
- Pashardes, Panos, 1991. "Contemporaneous and intertemporal child costs : Equivalent expenditure vs. equivalent income scales," Journal of Public Economics, Elsevier, vol. 45(2), pages 191-213, July.
- Pendakur, Krishna, 1998. "Semiparametric estimates and tests of base-independent equivalence scales," Journal of Econometrics, Elsevier, vol. 88(1), pages 1-40, November.
- Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
- Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
When requesting a correction, please mention this item's handle: RePEc:jae:japmet:v:20:y:2005:i:4:p:487-507. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.