Welfare Comparisons and Equivalence Scales.

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 fun...

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Publicado en:American Economic Review Vol. 69; no. 2; pp. 216 - 222
Autores principales: Pollak, Robert A., Wales, Terence J.
Formato: Artículo
Publicado: American Economic Association May79
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      pub: American Economic Association
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        atl: Welfare Comparisons and Equivalence Scales.
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          Pollak, Robert A.
          Wales, Terence J.
        affil:
          University of Pennsylvania
          University of British Columbia
      su:
        Economic demand
        Equivalence relations (Set theory)
        Elasticity (Economics)
        Mathematical models of economics
        Per capita
        Consumption (Economics)
      sug:
        subj:
          Economic demand
          Equivalence relations (Set theory)
          Elasticity (Economics)
          Mathematical models of economics
          Per capita
          Consumption (Economics)
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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