Arbeitspapier

Equivalence scales based on revealed preference consumption expenditure microdata: The case of West Germany

Equivalence scales are a prerequisite for any economic well-being comparison with measures on income distribution, inequality and poverty. This paper provides equivalence scales based on revealed preference consumption microdata for West Germany 1983. It is a part of a joint US and German research project comparing equivalence scales with consistent methods and similar microdata bases, recent income and consumption surveys of both countries. We concentrate on a single equation expenditure method with different Engel approaches as well as on a complete demand system approach.The complete demand system approach provides true, constant utility based equivalence scales and is specified by an extended linear expenditure system (ELES). While the Engel methods traditionally focus on food expenditures, the multiple equation expenditure system takes into account a full market basket with all its interdependencies and relative prices.Our equivalence scale study for West Germany based on actual available individual consumption expendituredata shows a variety of interesting results with regard to different goods and services baskets as well as to different household composition effects including the situation of the elderly, of the families with married couples and single mothers, and the cost of children. Our consumption results finally are compared to further consumption, expert, and subjective based equivalence scales.

Language
Englisch

Bibliographic citation
Series: FFB Diskussionspapier ; No. 3

Classification
Wirtschaft
Welfare, Well-Being, and Poverty: General
Measurement and Analysis of Poverty
Distribution: General
Personal Income, Wealth, and Their Distributions
Subject
alternative equivalence scales
Germany
USA
distribution of income
inequality
poverty
Alternative Äquivalenzskalen
Deutschland
USA
Einkommensverteilung
Ungleichheit
Armut

Event
Geistige Schöpfung
(who)
Merz, Joachim
Faik, Jürgen
Event
Veröffentlichung
(who)
Universität Lüneburg, Forschungsinstitut Freie Berufe (FFB)
(where)
Lüneburg
(when)
1992

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Merz, Joachim
  • Faik, Jürgen
  • Universität Lüneburg, Forschungsinstitut Freie Berufe (FFB)

Time of origin

  • 1992

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