| Sumario: | The article argues that the equivalence scales required for welfare comparisons are logically distinct from those which arise in the demand analysis. There are alternative ways of incorporating demographic variables into demand analysis by allowing some of the parameters of a demand system to be functions of demographic variables. These functions called conditional equivalence scales are usually estimated along with the parameters of the demand system by combining data from households with different demographic profiles. The alternatives to this procedure are: (1) to analyze separately data from households with distinct demographic profiles or (2) to combine data from households with different demographic profiles using conditional equivalence scales estimated from other data or specified a priori. The assumption that demand functions are independent of demographic variables, or that per capita consumption of each good is a function of per capita total expenditure, are examples of a priori specifications of conditional equivalence scales. In contrast to demand analysis, welfare analysis must compare the well-being of a family in alternative situations which differ with respect to its demographic profile as well as its consumption pattern.
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