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Difficulties in the use of equivalence scales for normative purpsoses

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  • Ruiz-Castillo, Javier

Abstract

Can we make welfare comparisons of households of different characteristics on the basis of their observed behavior in relation to cornmodity demands? This paper reviews sorne of the fundamental difficulties encountered in the attempt to use the concept oí an equivalence scale as a vehic1e for introducing demographics and other characteristics into empirical demand analysis and, at the same time, for establishing interpersonal comparisons oí wel1-being.

Suggested Citation

  • Ruiz-Castillo, Javier, 1991. "Difficulties in the use of equivalence scales for normative purpsoses," UC3M Working papers. Economics 2762, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:2762
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    References listed on IDEAS

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    1. Barnes, Roberta & Gillingham, Robert, 1984. "Demographic Effects in Demand Analysis: Estimation of the Quadratic Expenditure System Using Microdata," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 591-601, November.
    2. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-951, July.
    3. Anthony B. Atkinson & François Bourguignon, 1987. "Income Distribution and Differences in Needs," Palgrave Macmillan Books, in: George R. Feiwel (ed.), Arrow and the Foundations of the Theory of Economic Policy, chapter 12, pages 350-370, Palgrave Macmillan.
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    1. Ruiz-Castillo, Javier, 1994. "The evolution of the standard of living in Spain, 1973-74 to 1980-81," UC3M Working papers. Economics 2909, Universidad Carlos III de Madrid. Departamento de Economía.

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