Family-type subsistence incomes

Christos Koulovatianos, Carsten Schröder and Ulrich Schmidt

No 2006/5, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: Different family types may have a fixed flow of consumption costs, related to subsistence needs. We use a survey method in order to identify and estimate such a fixed component of spending for different families. Our method involves making direct questions about the linkup between aggregate disposable family income and well-being for different family types. Conducting our survey in six countries, Germany, France, Cyprus, China, India and Botswana, we provide evidence that fixed costs of consumption are embedded in welfare evaluations of respondents. More precisely, we find that the formalized relationship between welfare-retaining aggregate family incomes across different family types, suggested by Donaldson and Pendakur (2005) and termed 'Generalized Absolute Equivalence Scale Exactness,' is prevalent and robust in our data. We use this relationship to identify subsistence needs of different family types and to calculate income inequality.

Keywords: subsistence; equivalence scales; survey method; generalized equivalence scale exactness (search for similar items in EconPapers)
JEL-codes: C42 D12 D31 D63 I31 I32 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Family-type Subistence Incomes (2008)
Working Paper: Family-Type Subsistence Incomes (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:20065

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