Chapter 10 Econometric identification of the cost of maintaining a child

Martina Menon and Federico Perali

A chapter in Studies in Applied Welfare Analysis: Papers from the Third ECINEQ Meeting, 2010, pp 219-255 from Emerald Group Publishing Limited

Abstract: The chapter estimates the cost of maintaining a child, at different ages, the cost of being single, and the cost of additional adults present in a family, with the aim of making comparable the income levels of different households. The study investigates the issue of econometric identification of equivalence scales within a demand system modified to include demographic characteristics consistently with economic theory. It shows that a robust estimation of equivalence scales must take into formal consideration the problem of econometric identification. The estimate also puts forward all-encompassing demographic specifications to identify costs due to differences in needs, household lifestyles, and economies of scale.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:eme:reinzz:s1049-2585(2010)0000018013

DOI: 10.1108/S1049-2585(2010)0000018013

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