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La question de l'identification des échelles d'équivalence : une estimation du coût de l'enfant sur des données de panel

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The identification question raised by Lewbel in the estimation of equivalence scales is empirically discussed using Polish panel data for two sets of four consecutive years (1987-90 and 1997-2000). The value of the equivalence scale estimates varies considerably when dynamics of family formation changes is taken into account. The estimations also show that some expenditures depend on the expectation of the arrival or departure of family members. Estimates for the second, post transition panel, yield for cross-section a somewhat different level of the equivalence scale, compared to the first panel covering the transition period, contrary to the similarity of time-series estimates for the two data-sets. This may prove that the cost of children and adults estimated on cross-section are largely determined by economic environment changes.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number b04045.

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Length: 26 pages
Date of creation: Apr 2004
Handle: RePEc:mse:wpsorb:b04045
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  1. François Gardes & Philip Merrigan, 2002. "Individual Needs and Social Pressure : Evidence on the Easterlin Hypothesis on Canadian Repeated Cross-Sections," Working Papers 2002-53, Center for Research in Economics and Statistics.
  2. Tsakloglou, Panos, 1991. "Estimation and Comparison of Two Simple Models of Equivalence Scales for the Cost of Children," Economic Journal, Royal Economic Society, vol. 101(405), pages 343-357, March.
  3. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
  4. Karel VAN DEN BOSCH, 1996. "Equivalence scales based on Subjective Income Evaluation: Are children really cheap?," Discussion Papers (REL - Recherches Economiques de Louvain) 1996025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Deaton, Angus, 1974. "A Reconsideration of the Empirical Implications of Additive Preferences," Economic Journal, Royal Economic Society, vol. 84(334), pages 338-348, June.
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