The estimation of pensioner equivalence scales using subjective data

Mark Stewart

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This paper uses panel data on pensioners’ subjective evaluations of their financial positions to construct equivalence scales for pensioners. A pensioner couple is estimated to require an income 44% higher than a comparable single pensioner to reach the same standard of living. This is significantly less than the equivalence scale value implied by the ratio of state pension rates, the McClements equivalence scale value and the scale value derived from Engel curve estimation for food expenditure using the same data source. The estimated equivalence scale value is robust to variations in the definition of the pensioner sample, the measurement of income and the econometric model used.

Keywords: equivalence scales; pensioner incomes; pensions; subjective data; ordered response models; Engel curves. (search for similar items in EconPapers)
JEL-codes: C14 C23 C25 D12 D63 H55 J14 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2009
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Citations: View citations in EconPapers (12)

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https://warwick.ac.uk/fac/soc/economics/research/w ... s/2009/twerp_893.pdf

Related works:
Journal Article: THE ESTIMATION OF PENSIONER EQUIVALENCE SCALES USING SUBJECTIVE DATA (2009)
Working Paper: The estimation of pensioner equivalence scales using subjective data (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:893

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