Reference Income Effects in the Determination of Equivalence Scales Using Income Satisfaction Data

Do people adapt to changes in income? In contradiction to much of the previous literature, I find no evidence of adaptation to income in GSOEP (1984-2015) and UKHLS (1996-2017) data. Furthermore, I find that people also do not adapt to changes in reference income. Instead, reference income effects may be subject to reinforcement over time. Following the empirical approach of Vendrik (2013), I obtain these findings by estimating life satisfaction equations in which contemporaneous and lagged terms for a respondent’s own household income and their estimated reference income are simultaneously entered. Additionally, I instrument for own income and include lags of a large set of controls. What was found to be adaptation to raw household income in previous studies turns out tohave been driven by reinforcement of an initially small negative effect of household size that grows large over time. Implications of this result for the estimation of equivalence scales with subjective data are discussed.

The Analysis Of Income Satisfaction With An Application To Family Equivalence Scales

Happiness Quantified ◽

10.1093/0198286546.003.0002 ◽

2004 ◽

pp. 15-43

Author(s):

Bernard Van Praag

Keyword(s):

Equivalence Scales ◽

Income Satisfaction

The Analysis of Income Satisfaction with an Application to Family Equivalence Scales

Happiness Quantified ◽

10.1093/acprof:oso/9780199226146.003.0002 ◽

2007 ◽

pp. 15-45

Author(s):

Bernard Van Praag

Keyword(s):

Equivalence Scales ◽

Income Satisfaction

Book Reviews

Journal of Economic Literature ◽

10.1257/jel.47.1.171.r15 ◽

2009 ◽

Vol 47 (1) ◽

pp. 204-207

Keyword(s):

Reference Group ◽

Multidimensional Poverty ◽

Well Being ◽

Equivalence Scales ◽

Subjective Well Being ◽

External Effects ◽

The University ◽

The Impact ◽

Income Satisfaction

Nattavudh Powdthavee of University of York reviews “Happiness Quantified: A Satisfaction Calculus Approach” by Bernard Van Praag, Ada Ferrer-i-Carbonell,. The EconLit Abstract of the reviewed work begins “Revised and extended edition examines methods of measuring happiness, focusing on subjective measures as a proxy for welfare and well-being. Discusses the analysis of income satisfaction with an application to family equivalence scales; domain satisfactions; the aggregation of satisfactions--general satisfaction as an aggregate; political satisfaction; males, females, and households; the impact of past and future on present satisfaction; the influence of the reference group on our norms; health and subjective well-being; the effects of climate on welfare and well-being--external effects; how to find compensations for aircraft noise nuisance; taxation and well-being; subjective income inequalities; a generalized approach to subjective inequalities; poverty; and multidimensional poverty. Van Praag is at the University of Amsterdam, the Tinbergen Institute, and SCHOLAR. Ferrer-i-Carbonell is at the Institucio Catalana de Recerca i Estudis Avancats and at the Institut d’ Analisi Economica. Index.”

Family Size Equivalence Scales and Survey Evaluations of Income and Well-Being

Journal of Social Policy ◽

10.1017/s0047279400017621 ◽

1989 ◽

Vol 18 (3) ◽

pp. 383-408 ◽

Cited By ~ 28

Author(s):

Bruce Bradbury

Keyword(s):

Family Size ◽

Well Being ◽

Horizontal Equity ◽

Equivalence Scales ◽

Social Surveys ◽

Subjective Evaluations ◽

Family Types ◽

The Relationship

ABSTRACTThe determination of the different needs of families of different compositions is necessary in order to ensure horizontal equity in tax/transfer policies. Despite the seeming simplicity of the problem, a consensus as to the appropriate means of determining relative need remains elusive. One approach which has been proposed has been to use social surveys to analyse the relationship between subjective evaluations of well-being and incomes. This paper examines such methods, and discusses the key assumptions upon which they rest. An explanation is advanced as to why these methods may lead to an understatement of the differences in relative needs of different family types.

Estimation of Household Equivalence Scales in a Model with Joint Determination of Commodity Demand and Labour Supply

Journal of Income Distribution ◽

10.25071/1874-6322.701 ◽

1995 ◽

Author(s):

Carsten Folkertsma

Keyword(s):

Cross Sections ◽

Labour Supply ◽

Commodity Price ◽

Equivalence Scales ◽

Price Variation ◽

Joint Determination ◽

Single Cross Section ◽

Expenditure System ◽

Commodity Demand

In this paper we present a method to estimate Barten-type equivalence scales in a single cross-section. Since the failure to identify the Barten-scales is due to the lack of commodity price variation in cross-sections, we use a model of joint determination of commodity demand and labour supply to solve the problem. The variation of wage rates is sufficient to identify the scales of commodities and leisure. We use this method to estimate Barten-type scales in an extended linear expenditure system on a Dutch expenditure survey.

Estimating Extended Income Equivalence Scales from Income Satisfaction and Time Use Data

Social Indicators Research ◽

10.1007/s11205-019-02262-1 ◽

2020 ◽

Vol 149 (2) ◽

pp. 687-718

Author(s):

Melanie Borah

Keyword(s):

Time Use ◽

Equivalence Scales ◽

Income Satisfaction

Galactic orbits of stars

Symposium - International Astronomical Union ◽

10.1017/s0074180900105340 ◽

1966 ◽

Vol 25 ◽

pp. 93-97

Author(s):

Richard Woolley

Keyword(s):

Globular Cluster ◽

Potential Field ◽

High Velocity ◽

Velocity Vector ◽

Variable Stars ◽

The Sun ◽

Proper Motions ◽

Rr Lyrae ◽

The Galaxy

It is now possible to determine proper motions of high-velocity objects in such a way as to obtain with some accuracy the velocity vector relevant to the Sun. If a potential field of the Galaxy is assumed, one can compute an actual orbit. A determination of the velocity of the globular clusterωCentauri has recently been completed at Greenwich, and it is found that the orbit is strongly retrograde in the Galaxy. Similar calculations may be made, though with less certainty, in the case of RR Lyrae variable stars.

Distance to SN 1987A and the LMC

Symposium - International Astronomical Union ◽

10.1017/s0074180900118959 ◽

1999 ◽

Vol 190 ◽

pp. 549-554

Author(s):

Nino Panagia

Keyword(s):

Angular Size ◽

Large Magellanic Cloud ◽

Magellanic Cloud ◽

Light Curves ◽

Distance Modulus ◽

Absolute Size ◽

Sn 1987A

Using the new reductions of the IUE light curves by Sonneborn et al. (1997) and an extensive set of HST images of SN 1987A we have repeated and improved Panagia et al. (1991) analysis to obtain a better determination of the distance to the supernova. In this way we have derived an absolute size of the ringRabs= (6.23 ± 0.08) x 1017cm and an angular sizeR″ = 808 ± 17 mas, which give a distance to the supernovad(SN1987A) = 51.4 ± 1.2 kpc and a distance modulusm–M(SN1987A) = 18.55 ± 0.05. Allowing for a displacement of SN 1987A position relative to the LMC center, the distance to the barycenter of the Large Magellanic Cloud is also estimated to bed(LMC) = 52.0±1.3 kpc, which corresponds to a distance modulus ofm–M(LMC) = 18.58±0.05.