Equivalence Scales Based on Revealed Preference Consumption Expenditures. The Case of Germany / Äquivalenzskalen auf der Basis von Konsumausgaben offenbarter Präferenzen. Ergebnisse für die Bundesrepublik Deutschland

Joachim Merz and Jürgen Faik ()

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 1995, vol. 214, issue 4, 425-447

Abstract: Equivalence scales are a prerequisite for any economic well-being comparison with measures on income distribution, inequality and poverty. This paper provides new equivalence scales based on revealed preference consumption microdata. We concentrate on single expenditure Engel equations and on a complete demand system, the extended linear expenditure system (ELES), with all interdependencies of a full market basket.Microdata base is the newest availabe West German Income and Consumption Sample of 1983 with more than 42,000 households. Our results with differences regarding the goods' basket and household composition effects are compared to other discussed consumption, expert, and subjective based equivalence scales.

Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:214:y:1995:i:4:p:425-447

DOI: 10.1515/jbnst-1995-0405

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