scholarly journals Equivalence Scale in Terms of Polish Households' Source of Income

2012 ◽  
Vol 10 (2) ◽  
pp. 114-127 ◽  
Author(s):  
Paweł Ulman

Equivalence Scale in Terms of Polish Households' Source of Income The paper presents a comparison of the costs of Polish households by their main source of income. In order to compare these costs the author estimated three kinds of equivalence scales using the Engel method, ELES (Extended Linear Expenditure System), the demand equation and the Bernoulli well-being function. Estimation for household groups determined on account of the main source of income produced by the scales confirmed differences in households' maintenance costs compared to the costs of the reference household. A comparison of the values of equivalence scales revealed a similarity of the results produced by the ELES and the Bernoulli methods which differed from the results obtained by means of the Engel method.

Author(s):  
Joachim Merz ◽  
Jürgen Faik

SummaryEquivalence scales are a prerequisite for any economic well-being comparison with measures on income distribution, inequality and poverty. This paper provides new equivalence scales based on revealed preference consumption microdata. We concentrate on single expenditure Engel equations and on a complete demand system, the extended linear expenditure system (ELES), with all interdependencies of a full market basket.Microdata base is the newest availabe West German Income and Consumption Sample of 1983 with more than 42,000 households. Our results with differences regarding the goods' basket and household composition effects are compared to other discussed consumption, expert, and subjective based equivalence scales.


Econometrica ◽  
1969 ◽  
Vol 37 (4) ◽  
pp. 611 ◽  
Author(s):  
Robert A. Pollak ◽  
Terence J. Wales

2012 ◽  
Vol 1 (1) ◽  
Author(s):  
Ronald D. Estrada

The main objective of the study is to construct demand system of the basic social services provided by the city governments in the Philippines using the Linear Expenditure System. It seeks to establish the income and expenditure pattern of city governments of the Philippines in 2008. Results revealed that cities with higher incomes are dependent to locally-generated income while cities with lower incomes are dependent on IRA funds. Expenditure share is highest in the education sector while lowest in the social welfare. Subsistence expenditure level of each service sector was found statistically significant except health and nutrition. Some identified cost variables of respective service sectors were found significant predictors of subsistence expenditure level of each service sectors. Marginal discretionary income shares were found statistically significant across the service sectors except for education. Elasticity results revealed that all basic social services were found to be normal goods and demands for these services tend to be inelastic with respect to government income. Keywords - demand system, discretionary income, IRA, LES, marginal discretionary income, NSUR, simultaneous equation and subsistence expenditure.


2009 ◽  
Vol 47 (1) ◽  
pp. 204-207

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.”


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