Estimates of semiparametric equivalence scales
Article first published online: 27 JUL 2006
Copyright © 2006 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 21, Issue 5, pages 629–639, July/August 2006
How to Cite
Stengos, T., Sun, Y. and Wang, D. (2006), Estimates of semiparametric equivalence scales. J. Appl. Econ., 21: 629–639. doi: 10.1002/jae.863
- Issue published online: 27 JUL 2006
- Article first published online: 27 JUL 2006
- Manuscript Revised: 11 JAN 2005
- Manuscript Received: 19 APR 2004
- SSHRC, Canada.
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.