Estimates of semiparametric equivalence scales
Abstract
Within the semiparametric framework introduced by Pendakur (1999) we introduce a new loss function to estimate equivalence scales. This loss function uses all available information from the total expenditures of both the reference and nonreference households and as such it produces more reliable estimates. Using Canadian family expenditure data for 1996 we apply this loss function to obtain equivalence scale estimates for a variety of expenditure share categories such as food, fuel and clothing. Copyright © 2006 John Wiley & Sons, Ltd.
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Compared with estimates reported by Stengos et al. (2006) for Canada, our estimates are relatively low.
“Compared with the estimates reported by Stengos et al. (2006) for Canada, our estimates are relatively low and are closer to the results of Wilke (2006) using the EVS of 1998.”
From Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data (2021) · cites this paper as Stengos et al. (2006)
Modifying the loss function according to Stengos et al. (2006) leads to more plausible results.
“While modifying the loss function according to Stengos et al. (2006) leads to more plausible results, it is still the case that not all criteria are satisfied; e.g., the scale values are not strictly increasing with household size.”
From Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data (2021) · cites this paper as Stengos et al. (2006)
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References 21 · Cited by 17
- Authors
- Stengos, T., Sun, Y., & Wang, D.
- Affiliations
- University of Guelph (CA)
- Venue
- Journal of Applied Econometrics
- Publisher
- Wiley
- Published
- 2006-07
- Volume
- 21
- Issue
- 5
- Pages
- 629-639
- ISSN
- 0883-7252 (ISSN-L)
- 1099-1255
- OpenAlex
- W2044563660
- Cited by
- 17
- References
- 21
- Citations by year
- 2023: 1 · 2020: 1 · 2019: 1 · 2014: 1 · 2012: 2
- FWCI
- 4.64
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Applied Econometrics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- Social Sciences and Humanities Research Council of Canada
- Topics
- Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
- Social Sciences › Decision Sciences › Management Science and Operations Research › Efficiency Analysis Using DEA
- Keywords
- equivalence scales, semiparametric estimation, loss functions, household expenditure, total expenditure, food expenditure, fuel costs, clothing expenditure
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