Methods of Estimating Household Equivalence Scales: An Empirical Investigation

Julie Nelson ()

Review of Income and Wealth, 1992, vol. 38, issue 3, pages 295-310

Abstract: This paper presents empirical evidence regarding key assumptions of the Rothbarth and Barten methods of constructing household equivalence scales. The assumption of separability in the Rothbarth model is investigated.by examining the implied intrahousehold allocation of specific goods and by examining studies of economies of scale in household consumption. The assumption of the exogeneity of the distribution parameters in the Barten model is related to the results of empirical studies of clothing expenditures. This paper suggests that empirical evidence fails to support the assumptions maintained in these theoretically sophisticated models of household income equivalence. Copyright 1992 by The International Association for Research in Income and Wealth.

Date: 1992
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