Semi‐parametric estimation of consumption‐based equivalence scales: the case of Germany

B-Tier
Journal: Journal of Applied Econometrics
Year: 2006
Volume: 21
Issue: 6
Pages: 781-802

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:wly:japmet:v:21:y:2006:i:6:p:781-802
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-29