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Quantifying the economic cost of children: a note on intertemporal equivalence scales

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  • Gianni Betti

    (University of Siena)

Abstract

Static economic models based on complete demand systems are inadequate for estimating unconditional equivalence scales; in order to capture the effects of demographic changes on consumer behaviour, a life-cycle dynamic model is taken into account. In literature, studies have presented and evaluated longitudinal equivalence scales and intertemporal cost of children but these cannot be applied in practice when equivalence scales are utilised in poverty or income distribution analyses. This paper proposes intratemporal equivalent income scales, which are within period index numbers incorporating intertemporal consumer behaviour.

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  • Gianni Betti, 2017. "Quantifying the economic cost of children: a note on intertemporal equivalence scales," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(3), pages 1197-1205, May.
    • Handle: RePEc:spr:qualqt:v:51:y:2017:i:3:d:10.1007_s11135-016-0325-2
    DOI: 10.1007/s11135-016-0325-2
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    2. 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.
    3. Banks, James & Blundell, Richard & Preston, Ian, 1994. "Life-cycle expenditure allocations and the consumption costs of children," European Economic Review, Elsevier, vol. 38(7), pages 1391-1410, August.
    4. John Bishop & Andrew Grodner & Haiyong Liu & Ismael Ahamdanech-Zarco, 2014. "Subjective poverty equivalence scales for Euro Zone countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 265-278, June.
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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