Nonparametric bounds on equivalence scales

Christian Dudel ()
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Christian Dudel: Ruhr-Universitaet Bochum

Economics Bulletin, 2015, vol. 35, issue 4, 2161-2165

Abstract: Methods for estimating equivalence scales usually rely on rather strong identifying assumptions. This note considers nonparametric bounds on equivalence scales derived from the potential outcomes framework and uses nonparametric methods for estimation, which requires only mild assumptions. The method yields only lower and upper bounds of equivalence scales rather than point estimates. The results of an analysis using German expenditure data show that the range implied by these bounds is rather wide.

Keywords: Household equivalence scales; Nonparametric bounds (search for similar items in EconPapers)
JEL-codes: C1 D1 (search for similar items in EconPapers)
Date: 2015-10-16
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Citations: View citations in EconPapers (4)

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