HOUSEHOLD COST FUNCTIONS AND EQUIVALENCE SCALES AN ALTERNATIVE APPROACH

Bernard van Praag

No 272287, Econometric Institute Archives from Erasmus University Rotterdam

Abstract: In this paper we estimated household cost functions and equivalence scales. Two versions of scales are derived, a general one and a utilityspecific one. The new feature of this paper is the methodology. With respect to method we base ourselves on direct cost assessments by respondents for various welfare levels, derived from attitude questions. We see that respondents are not able to assess the true cost function directly, but that their response behavior reveals a virtual cost function. From their response the true cost function may be derived. The alternative approach used in this paper does not make use of typical consumer surveys. The specific question needed in this paper can be plugged into any type of survey, oral or written. Linked with a few background data on income and family size it serves its purpose. A straightforward generalization of 'this method lies at hand. The same method can be used to develop and estimate equivalence scales for other factors.

Keywords: Consumer/Household Economics; Financial Economics (search for similar items in EconPapers)
Pages: 21
Date: 1984-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/272287/files/erasmus163.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:eureia:272287

DOI: 10.22004/ag.econ.272287

Access Statistics for this paper

More papers in Econometric Institute Archives from Erasmus University Rotterdam Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().