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Regional Differences in Equivalence Scales in Turkey

Author

Listed:
  • Gianni Betti

    (Department of Economics and Statistics, University of Siena)

  • Mehmet Karadag

    (Turkish Statistical Institute)

  • Ozlem Sarica

    (Turkish Statistical Institute)

  • Baris Ucar

    (Turkish Statistical Institute)

Abstract

Equivalence scales have a crucial role in poverty measurement. For Turkey, there are no available up-todate 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

  • Gianni Betti & Mehmet Karadag & Ozlem Sarica & Baris Ucar, 2017. "Regional Differences in Equivalence Scales in Turkey," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 63-69.
    • Handle: RePEc:ura:ecregj:v:1:y:2017:i:1:p:63-69
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    Other versions of this item:

    • 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.

    References listed on IDEAS

    as
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    5. 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.
    6. Wouter van Ginneken, 1982. "Generating Internationally Comparable Income Distribution Data: Evidence From The Federal Republic Of Germany (1974), Mexico (1968) And The United Kingdom (1979)," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 28(4), pages 365-379, December.
    7. Gianni Betti & Mehmet Ali Karadag & Ozlem Sarica & Baris Ucar, 2017. "How to Reduce the Impact of Equivalence Scales on Poverty Measurement: Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1023-1035, July.
    8. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
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    10. 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.
    11. 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.
    12. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
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    Cited by:

    1. Raziye Selim & Gizem Kaya, 2018. "The Changes of Cost of Children for Turkey by Using Income-Dependent Equivalence Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 803-824, September.
    2. 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.

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    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;
    All these keywords.

    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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