Income-dependent equivalence scales and choice theory: implications for poverty measurement

Christos Koulovatianos and Carsten Schröder

Chapter 4 in Research Handbook on Measuring Poverty and Deprivation, 2023, pp 39-49 from Edward Elgar Publishing

Abstract: Equivalence Scales are a tool for removing the heterogeneity of household sizes in the measurement of inequality, and affect poverty assessments and poverty lines. We address the disadvantage that poor households may suffer due to their reduced ability to share goods within the household. This disadvantage is important to estimate and embed in standard analysis, as it seems to have a substantial quantitative impact on the measurement of poverty. We also suggest that future research on the role of subsistence incomes of different household types in utility functions may shed light on explanations for poverty and may guide anti-poverty policies.

Keywords: Development Studies; Economics and Finance; Geography; Research Methods; Sociology and Social Policy (search for similar items in EconPapers)
Date: 2023
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Related works:
Working Paper: Income-Dependent Equivalence Scales and Choice Theory: Implications for Poverty Measurement (2022)
Working Paper: Income-Dependent Equivalence Scales and Choice Theory: Implications for Poverty Measurement (2022)
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