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Regional differences in equivalence scales in Turkey

Author

Listed:
  • BETTI GIANNI

    (University of Siena)

  • KARADAG MEHMET ALI

    (Turkish Statistical Institute)

  • SARICA OZLEM

    (Turkish Statistical Institute)

  • UCAR BARIS

    (Turkish Statistical Institute)

Abstract

Equivalence scales have a crucial role in poverty measurement. For Turkey, there are no available up-to-date equivalence scales, representing Turkish data. There were no efforts for calculation of equivalence scales at the regional level. The aim of the paper is to calculate and propose an equivalence scale for Turkey and estimate regional differences. Besides the models with Engel method, different equivalence scales were estimated by Almost Ideal Demand System. The results of the first model of AIDS approach composed of 5 age groups, is proposed for Turkey, but for simplicity the results of the second AIDS model could be used as well. In this model, the equivalence scale for Turkey is calculated as 0.65 for each additional adult after the first one and 0.35 for each child. For regional equivalence scales, we use two methods and comare the results. In the first one, regressions were run for each region separately and in the second one, dummy variables introduced. The highest difference in the results of the two methods was observed in Istanbul region. The findings for the regional scales are less reliable as the household size is bigger. This limitation is due to the relatively small size of the data sets. Having surveys with higher sample sizes would enable better results. After getting the results some conclusions could be drawn especially with regard to child cost differences among regions. It was expected to have higher costs for children in poorer regions and the regional results have confirmed this hypothesis.

Suggested Citation

  • Betti Gianni & Karadag Mehmet Ali & Sarica Ozlem & Ucar Baris, 2017. "Regional differences in equivalence scales in Turkey," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», vol. 13(1), pages 63-69.
  • Handle: RePEc:scn:015306:16979076
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    References listed on IDEAS

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    1. Krishna Pendakur, 2005. "Semiparametric estimation of lifetime equivalence scales," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 487-507.
    2. Fabrizio Balli & Silvia Tiezzi, 2010. "Erratum to: Equivalence scales, the cost of children and household consumption patterns in Italy," Review of Economics of the Household, Springer, vol. 8(4), pages 551-552, December.
    3. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    4. repec:spr:soinre:v:132:y:2017:i:3:d:10.1007_s11205-016-1335-0 is not listed on IDEAS
    5. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
    6. Arthur Lewbel, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," Review of Economic Studies, Oxford University Press, vol. 52(1), pages 1-18.
    7. Erwin Charlier, 2002. "Equivalence Scales in an Intertemporal Setting with an Application to the Former West Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 99-126, March.
    8. Fabrizio Balli & Silvia Tiezzi, 2010. "Equivalence scales, the cost of children and household consumption patterns in Italy," Review of Economics of the Household, Springer, vol. 8(4), pages 527-549, December.
    9. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    10. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    Citations

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    Cited by:

    1. Baris Ucar & Gianni Betti, 2016. "The effect of a newborn on household poverty: a multi-indicator analysis," Department of Economics University of Siena 742, Department of Economics, University of Siena.
    2. repec:spr:soinre:v:139:y:2018:i:2:d:10.1007_s11205-017-1722-1 is not listed on IDEAS

    More about this item

    Keywords

    EQUIVALENCE SCALES; CHILD COSTS; REGIONAL EQUIVALENCE SCALES; ENGEL CURVE; REGIONAL DIFFERENCES; ALMOST IDEAL DEMAND SYSTEM; POVERTY MEASUREMENT; POVERTY INDICATORS; TURKEY; HBS; NUTS;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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