Semi‐parametric estimation of consumption‐based equivalence scales: the case of Germany
Abstract
Consumption‐based equivalence scales are estimated by applying the extended partially linear model (EPLM) to the 1998 German Income and Consumption Survey (EVS). In this model the equivalence scales are identified from nonlinearities in household demand. The econometric framework should not therefore impose strong restrictions on the functional forms of household expenditure shares. The chosen semi‐parametric specification meets this requirement. It is flexible, it yields$\sqrt{N}$‐consistent parameter estimates and it is consistent with consumer theory. Estimated equivalence scales are below or in the range of the expert equivalence scales of the German social benefits system. Copyright © 2006 John Wiley & Sons, Ltd.
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Our estimates are closer to the results of Wilke (2006) using the EVS of 1998.
“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 Wilke (2006)
Equivalence scales reported by Wilke (2006) do not violate the household size effect.
“Equivalence scales reported by Wilke (2006) do not violate the household size effect (See Table 7).”
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 Wilke (2006)
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- Authors
- Wilke, R. A.
- Affiliations
- Centre for European Economic Research (DE)
- Corresponding author
- Wilke, Ralf A.
- ORCID
- Wilke, Ralf A.
- Venue
- Journal of Applied Econometrics
- Publisher
- Wiley
- Published
- 2006-09
- Volume
- 21
- Issue
- 6
- Pages
- 781-802
- ISSN
- 0883-7252 (ISSN-L)
- 1099-1255
- OpenAlex
- W3122107907
- Cited by
- 15
- References
- 32
- Citations by year
- 2025: 1 · 2020: 1 · 2016: 1 · 2014: 1 · 2012: 3
- FWCI
- 4.64
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Applied Econometrics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- Universiteit van Tilburg
- Topics
- Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
- Keywords
- semiparametric estimation, household demand, equivalence scales
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