Estimates of semiparametric equivalence scales

Yiguo Sun (), Thanasis Stengos () and Dianqin Wang
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Dianqin Wang: Department of Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada, Postal: Department of Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada

Journal of Applied Econometrics, 2006, vol. 21, issue 5, pages 629-639

Abstract: Within the semiparametric framework introduced by Pendakur (1999) we introduce a new loss function to estimate equivalence scales. This loss function uses all available information from the total expenditures of both the reference and nonreference households and as such it produces more reliable estimates. Using Canadian family expenditure data for 1996 we apply this loss function to obtain equivalence scale estimates for a variety of expenditure share categories such as food, fuel and clothing. Copyright © 2006 John Wiley & Sons, Ltd.

Date: 2006
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Related works:
Working Paper: Estimates of Semiparametric Equivalence Scales (2003)
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