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Adult equivalence scales, inequality and poverty

  • John Creedy
  • Cath Sleeman

This paper examines the sensitivity of inequality and poverty measures to the adult equivalence scale and the unit of analysis. Comparisons are made using parametric equivalence scales, and income units include individuals, equivalent adults and households. The role of the correlation between equivalent income and household size, and the weight attached to children, is examined analytically. Empirical results are based on New Zealand Household Expenditure Survey (HES) data for total expenditure. Further results using a variety of equivalence scales, for New Zealand, Australia, the UK and the OECD, are examined.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00779950509558480
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Article provided by Taylor & Francis Journals in its journal New Zealand Economic Papers.

Volume (Year): 39 (2005)
Issue (Month): 1 ()
Pages: 51-81

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Handle: RePEc:taf:nzecpp:v:39:y:2005:i:1:p:51-81
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  1. Richard Blundell & Ian Preston, 1998. "Consumption Inequality And Income Uncertainty," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 603-640, May.
  2. Richard Blundell & Ian Preston, 1994. "Income or consumption in the measurement of inequality and poverty?," IFS Working Papers W94/12, Institute for Fiscal Studies.
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  17. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-75, December.
  18. Anthony Shorrocks, 2004. "Inequality and welfare evaluation of heterogeneous income distributions," Journal of Economic Inequality, Springer, vol. 2(3), pages 193-218, July.
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