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Empirical versus policy equivalence scales: matching estimation

Author

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  • Adam Szulc

    (Institute of Statistics and Demography, Warsaw School of Economics.)

Abstract

Properties of three types of equivalence scales obtained through the matching estimations are compared. The scales are derived by estimating the effect that demographic variables have on the houshold expenditures. The types estimated include: i/ matching on common values of well-being covariates (partly normative approach), ii/ matching on simulated quivalent expenditure minimising the deviation between the estimated and persumed value (solely empirical method), iii/matching on covariates with imposed economy of scale on selected commodities (policy scales). Unlike many scales based on the estimates of demand systems, those obtained by the matching estimation confirm expectations based on the economic theory.

Suggested Citation

  • Adam Szulc, 2010. "Empirical versus policy equivalence scales: matching estimation," Working Papers 23, Institute of Statistics and Demography, Warsaw School of Economics.
  • Handle: RePEc:isd:wpaper:23
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    File URL: http://kolegia.sgh.waw.pl/pl/KAE/struktura/ISiD/publikacje/Documents/Working_Paper/ISID_WP_9_2011.pdf
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    Cited by:

    1. Leszek Morawski & Adrian Domitrz, 2017. "Subjective Approach To Assessing Poverty In Poland – Implications For Social Policy," Statistics in Transition New Series, Polish Statistical Association, vol. 18(3), pages 501-520, September.
    2. Dudel Christian & Garbuszus Jan Marvin & Ott Notburga & Werding Martin, 2017. "Matching as Non-Parametric Preprocessing for the Estimation of Equivalence Scales," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(2), pages 115-141, April.

    More about this item

    Keywords

    equivalence scale; matching estimation;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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