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Are Equivalence Scales the Same for the United States and Canada?

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  • Garner, T.I.
  • Phipps, S.

Abstract

This research uses microdata from the 1986 Statistics Canada Family Expenditure Survey and from the 1986-88 U.S. Consumer Expenditure Survey to estimate equivalence scales using a methodology that is very similar to that employed by Statistics Canada for the estimation of low-income cutoffs. Employing identical sample selection criteria and identically specified models, the authors find that equivalence scales for the two countries are not, in general, statistically different when estimated in the same way. The larger issue is then whether the two countries should choose the same methodology for the estimation of equivalence scales. Copyright 1994 by The International Association for Research in Income and Wealth.
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Suggested Citation

  • Garner, T.I. & Phipps, S., 1993. "Are Equivalence Scales the Same for the United States and Canada?," Department of Economics at Dalhousie University working papers archive 93-02, Dalhousie, Department of Economics.
  • Handle: RePEc:dal:wparch:93-02
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    Cited by:

    1. Jesus Fernandez-Villaverde & Dirk Krueger, 2002. "Consumption over the Life Cycle: Some Facts from Consumer Expenditure Survey Data," Centro de Alti­simos Estudios Ri­os Pe©rez(CAERP) 7, Centro de Altisimos Estudios Rios Perez (CAERP).
    2. Tasneem Zafar & Alfons J. Weichenrieder, 2011. "Evaluating Real World Income Distributions behind the Veil of Ignorance - How Risk Averse do You have to be to Prefer Europe over the US?," LIS Working papers 572, LIS Cross-National Data Center in Luxembourg.
    3. Jin-Long Liu & Ching-Chun Hsu, 2004. "Economies of scale, gender discrimination, and cost of children," Applied Economics Letters, Taylor & Francis Journals, vol. 11(6), pages 377-382.
    4. Osberg, L. & Sharpe, A., 1998. "An Index of Economic Well-being for Canada," Department of Economics at Dalhousie University working papers archive 98-08, Dalhousie, Department of Economics.
    5. Duclos, Jean-Yves & Mercader-Prats, Magda, 1999. "Household Needs and Poverty: With Application to Spain and the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 77-98, March.
    6. Lars Osberg & Andrew Sharpe, 2003. "Human Well-being and Economic Well-being: What Values Are Implicit in Current Indices?," CSLS Research Reports 2003-04, Centre for the Study of Living Standards.
    7. Lars Osberg, 2003. "Long Run Trends in Income Inequality in the United States, UK, Sweden, Germany and Canada: A Birth Cohort View," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 121-141, Winter.
    8. Gould, Brian W. & Yen, Steven T., 2002. "Food Demand In Mexico: A Quasi-Maximum Likelihood Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19667, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Michelini, Claudio, 1999. "The estimation of a rank 3 demand system with demographic demand shifters from quasi-unit record data of household consumption," Economics Letters, Elsevier, vol. 65(1), pages 17-24, October.
    10. Sastre, Mercedes & Ruiz-Castillo, Javier & Garner, Thesia I., 1999. "The influence of demographic and household specific price indices on expenditure based inequality and welfare: a comparison of Spain and the United States," UC3M Working papers. Economics 6165, Universidad Carlos III de Madrid. Departamento de Economía.
    11. Andrew Sharpe & Lars Osberg, 2000. "International Comparisons of Trends in Economic Well-being," LIS Working papers 242, LIS Cross-National Data Center in Luxembourg.
    12. Jesus Fernández-Villaverde & Dirk Krueger, 2007. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 552-565, August.
    13. Osberg, L. & Xu, K., 1998. "Poverty Intensity- How Well Does Canada Compare? ," Department of Economics at Dalhousie University working papers archive 98-05, Dalhousie, Department of Economics.
    14. Okamoto, Masato, 2012. "The Relationship between the Equivalence Scale and the Inequality Index and Its Impact on the Measurement of Income Inequality," MPRA Paper 37410, University Library of Munich, Germany.
    15. Lars Osberg & Kuan Xu, 1999. "Poverty Intensity: How Well Do Canadian Provinces Compare?," Canadian Public Policy, University of Toronto Press, vol. 25(2), pages 179-195, June.
    16. Kuan Xu & Lars Osberg, 1997. "International comparisons of Poverty Intensity: Index Decomposition and Bootstrap Inference," LIS Working papers 165, LIS Cross-National Data Center in Luxembourg.
    17. G. C. Lim & Sarantis Tsiaplias, 2015. "Financial Stress Thresholds and Household Equivalence Scales," Melbourne Institute Working Paper Series wp2015n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    18. Gould, Brian W. & Lee, Yoonjung & Dong, Diansheng & Villarreal, Hector J., 2002. "Household Size And Composition Impacts On Meat Demand In Mexico: A Censored Demand System Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19722, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Osberg, Lars, 1997. "Economic growth, income distribution and economic welfare in Canada 1975-1994," The North American Journal of Economics and Finance, Elsevier, vol. 8(2), pages 153-166.
    20. Dudel, Christian & Garbuszus, Jan Marvin & Schmied, Julian, 2017. "Assessing differences in household needs: A comparison of approaches for the estimation of equivalence scales using German expenditure data," Ruhr Economic Papers 723, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    21. Marina Popova, 1996. "Income Inequality and Poverty of Economies in Transition," LIS Working papers 144, LIS Cross-National Data Center in Luxembourg.
    22. Andrew Sharpe & Christopher Ross, 2011. "Living Standards Domain of the Canadian Index of Wellbeing," CSLS Research Reports 2011-17, Centre for the Study of Living Standards.
    23. Gould, Brian W. & Sabates, Ricardo, 2001. "The Structure Of Food Demand In Urban China: A Demand System Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20778, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    labour market ; statistics ; economic models;

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