IDEAS home Printed from https://ideas.repec.org/a/mbr/jmonec/v15y2020i3p295-312.html
   My bibliography  Save this article

Estimating Electric Power's Equivalent Scale for the Urban Iranian Household

Author

Listed:
  • Salem, Aliasghar

    (Associate Professor of economics at Allameh Tabatabai University)

  • Fridzad, Ali

    (Department of Energy, Agriculture and Environmental Economics, Allameh Tabataba University, Tehran, Iran)

  • Amini, Mitra

    (Department of Economics, Allameh Tabatabe University, Tehran, Iran)

Abstract

Household equivalent scale is an index to measure the impact of household demographic characteristics, such as the householder’s age and gender, the number of household members, etc., and plays a significant role in measuring poverty and inequality. By taking into account demographic characteristics differences, this index facilitates the reasonable comparison of households’ welfare, and functions as a coefficient for the target household in relation to the reference household. Using income and expenditures data of Iranian urban household in the period of 2012-2018, this study measures the relative child cost of each urban household in Iran while estimating the Quadratic Almost Ideal Demand System (QAIDS) and price scaling by means of Nonlinear Seemingly Unrelated Regression. Also, it calculates the elasticity of income and price of electric power goods. The results illustrate that the relative child cost in Iranian urban households is 33% of an adult cost, and electric power goods in Iranian urban households is a necessary yet low elasticity commodity. Therefore, pricing policies may not significantly influence demand for this product.

Suggested Citation

  • Salem, Aliasghar & Fridzad, Ali & Amini, Mitra, 2020. "Estimating Electric Power's Equivalent Scale for the Urban Iranian Household," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 15(3), pages 295-312, July.
    • Handle: RePEc:mbr:jmonec:v:15:y:2020:i:3:p:295-312
    as

    Download full text from publisher

    File URL: http://jme.mbri.ac.ir/article-1-505-en.pdf
    Download Restriction: no
    File URL: http://jme.mbri.ac.ir/article-1-505-en.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hoai-Son Nguyen & Minh Ha-Duong, 2017. "Family size, Increasing block tariff and Economies of scale of household electricity consumption in Vietnam from 2010 to 2014," Post-Print hal-01714899, HAL.
    2. 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.
    3. 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.
    4. Victoria Vernon, 2004. "Food Expenditure, Food Preparation Time and Household Economies of Scale," Labor and Demography 0412005, University Library of Munich, Germany.
    5. Thaiyoong Penny Mok & Gillis Maclean & Paul Dalziel, 2011. "Household Size Economies: Malaysian Evidence," Economic Analysis and Policy, Elsevier, vol. 41(2), pages 203-223, September.
    6. Nanak Kakwani & Hyun H. Son, 2005. "Economies Of Scale In Household Consumption: With Application To Australia," Australian Economic Papers, Wiley Blackwell, vol. 44(2), pages 134-148, June.
    7. Ironmonger, D S & Aitken, C K & Erbas, B, 1995. "Economies of scale in energy use in adult-only households," Energy Economics, Elsevier, vol. 17(4), pages 301-310, October.
    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. Karbasi, A. & Mohammadzadeh, S.H., 2018. "Estimating Household Expenditure Economies of Scale in Iran," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277152, International Association of Agricultural Economists.
    2. Thaiyoong Penny Mok & Gillis Maclean & Paul Dalziel, 2013. "Alternative Poverty Lines for Malaysia," Asian Economic Journal, East Asian Economic Association, vol. 27(1), pages 85-104, March.
    3. Jayasinghe, Maneka & Chai, Andreas & Ratnasiri, Shyama & Smith, Christine, 2017. "The power of the vegetable patch: How home-grown food helps large rural households achieve economies of scale & escape poverty," Food Policy, Elsevier, vol. 73(C), pages 62-74.
    4. Maneka Jayasinghe & Christine Smith, 2021. "Poverty Implications of Household Headship and Food Consumption Economies of Scales: A Case Study from Sri Lanka," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 157-185, May.
    5. Dickson Thomas Ndamsa & Delphine Murkwi Gur & Francis Menjo Baye, 2023. "Household size and food consumption spending in cameroon. is there evidence of economies of size?," SN Business & Economics, Springer, vol. 3(8), pages 1-24, August.
    6. Md. Matiur Rahman & Seung-Hoon Jeon & Kyoung-Soo Yoon, 2020. "Estimation of Equivalence Scale and Assessment of Its Impact on Poverty Measurement in Bangladesh," Sustainability, MDPI, vol. 12(21), pages 1-13, October.
    7. Berendeeva, Ekaterina & Ratnikova, Tatiana, 2016. "The Deaton–Paxson paradox in the consumption of Russian households," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 42, pages 54-74.
    8. Vellore Arthi & James Fenske, 2018. "Polygamy and child mortality: Historical and modern evidence from Nigeria’s Igbo," Review of Economics of the Household, Springer, vol. 16(1), pages 97-141, March.
    9. 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.
    10. Bargain, Olivier & 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).
    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, Luxembourg Institute of Socio-Economic Research (LISER).
    12. Alma Kudebayeva & Armando Barrientos, 2013. "A decade of poverty reduction in Kazakhstan 2000-2009: growth and/or redistribution?," Global Development Institute Working Paper Series 18713, GDI, The University of Manchester.
    13. Brooks Evans & Robert Palacios, 2015. "Who is Poorer?," World Bank Publications - Reports 24992, The World Bank Group.
    14. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 107(C), pages 262-276.
    15. Aleksandr Vashchilko, 2012. "Households' Expenditure Patterns in Belarus," BEROC Working Paper Series 20, Belarusian Economic Research and Outreach Center (BEROC).
    16. Quisumbing, Agnes R. & Haddad, Lawrence James & Peña, Christine, 2001. "Are women overrepresented among the poor?," FCND discussion papers 115, International Food Policy Research Institute (IFPRI).
    17. Olivier Bargain & Olivier Donni & Prudence Kwenda, 2011. "Intrahousehold Distribution and Child Poverty: Theory and Evidence from Côte d'Ivoire," Working Papers 2011-031, Human Capital and Economic Opportunity Working Group.
    18. 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.
    19. Angus Deaton, 2016. "Measuring and Understanding Behavior, Welfare, and Poverty," American Economic Review, American Economic Association, vol. 106(6), pages 1221-1243, June.
    20. Nancy Folbre & Marta Murray-Close & Jooyeoun Suh, 2018. "Equivalence scales for extended income in the U.S," Review of Economics of the Household, Springer, vol. 16(2), pages 189-227, June.

    More about this item

    Keywords

    Economies Of Scale; Equivalent Scale; Household Welfare; Quadratic Almost Ideal Demand System; Consumption Economies Of Scale; Demographic Characteristics; MicroData; Childcost;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    Statistics

    Access and download statistics

    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:mbr:jmonec:v:15:y:2020:i:3:p:295-312. 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: M. E. (email available below). General contact details of provider: https://edirc.repec.org/data/mbcbiir.html .

    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.