 Semiparametric estimation of lifetime equivalence scalesJournal of Applied Econometrics, 2005, vol. 20, issue 4, 487-507 Abstract: Pashardes (1991) and Banks et al. (1994) use parametric methods to estimate lifetime equivalence scales. Their approaches put parametric restrictions on the differences in within‐period expenditure needs across household types, the intertemporal allocation of expenditure, and the shapes of commodity demand equations. This paper puts parametric structure only on the differences in within‐period expenditure needs across household types. This implies structure on the intertemporal allocation of expenditure, but leaves the shapes of commodity demand equations unrestricted. Semiparametric methods are used to estimate within‐period and lifetime equivalence scales with Canadian expenditure data, and to test the restrictions imposed on within‐period expenditure functions. Estimated lifetime equivalence scales are similar in size to those estimated by Banks et al. (1994) and exhibit equal lifetime costs for first and second children. Copyright © 2005 John Wiley & Sons, Ltd. Date: 2005 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:japmet:v:20:y:2005:i:4:p:487-507 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Applied Econometrics is currently edited by M. Hashem Pesaran More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd. |
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