On the Income Dependence of Equivalence Scales
37 Pages Posted: 8 Aug 2003
There are 2 versions of this paper
On the Income Dependence of Equivalence Scales
Date Written: August 14, 2004
Abstract
Household consumption exhibits economies of scale as the number of household members increases. We collect survey data from two countries, Germany and France, in order to obtain direct subjective estimates of household consumption economies of scale, and, in particular, to examine an additional dimension: whether household consumption economies of scale change as living standards go up. Our data from both countries indicate strongly that household economies of scale increase as the living standard goes up. We discuss the robustness of our survey method and compare our results to these of alternative estimation methods in the literature.
Keywords: Equivalence scales, survey method, independence of base
JEL Classification: C42, C90, D31, D63, I31
Suggested Citation: Suggested Citation
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