Equivalizing Incomes: A Normative Approach

Udo Ebert

International Tax and Public Finance, 2000, vol. 7, issue 6, 619-640

Abstract: The paper deals with the comparisonof living standards and investigates two normative methods ofderiving equivalizing transformations for a population whichhas different household types. The first one equates the utilitylevels of representative household members belonging to differenthouseholds. The second method evaluates the well-being of householdsby a social welfare ordering defined by means of household utilityfunctions. The methods can determine the implicit normative assumptionsinvolved in conducting distributional analysis using any equivalizingtransformation. In particular income-level dependent equivalencescales can be founded in this framework. The assumptions underlyingboth approaches are examined and compared. Copyright Kluwer Academic Publishers 2000

Keywords: household composition; living standard; equivalizing transformations; normative comparison; equivalence scales (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (17)

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DOI: 10.1023/A:1008777025610

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