Estimating Equivalence Scale for Iranian Rural Household

Mohammadi, Teimour; Salem, Ali Asghar; Mir Mohammad Ali Tajrishi, Fatemeh

doi:10.22054/ijer.2017.8293

Authors

¹ Assistant Professor, Allameh Tabataba'i University, Tehran, Iran

² M.A. in Economics, Allameh Tabataba'i University, Tehran, Iran

https://doi.org/10.22054/ijer.2017.8293

Abstract

Equivalence scale is an important concept in household welfare debates wich plays an important role in the measurement of poverty and inequality. Equivalence scale is an index that converts household's expenditures into comparable values. In this research, equivalence scale in terms of the relative cost of a child was estimated using Price scaling with a Quadratic Almost Ideal Demand System. The estimation method is nonlinear seemingly unrelated regressions and the estimation period is 2008-2012. Results indicate that one child costs about 15 percent of an adult in rural households and the quadratic expenditure effects is highly significant. It is concluded that the general equivalence scale, varies with price. Household's equivalence scales with different demographic characteristics is used to calculate equivalent income in this period in order to compare welfare, poverty and income inequality across rural households.

Keywords

References

راغفر، حسین، خلجی، علیرضا و تیمور محمدی (1386) «الگوهای اندازه‌گیری مقیاس معادل خانوار و محاسبه آن در ایران»، فصلنامه علمی- پژوهشی رفاه اجتماعی، سال ششم، شماره 24، 199-221.

شفیعی، هدی (1390)، «اندازه‌گیری مقیاس معادل خانوارهای ایرانی در سال 1387»، پایان‌نامه کارشناسی ارشد، دانشکده علوم اجتماعی و اقتصادی دانشگاه الزهرا (س).

فرزاد، مژده (1388)، «اندازه‌گیری مقیاس معادل برای خانوارهای با ابعاد مختلف در شهر تهران»، پایان‌نامه کارشناسی ارشد، دانشکده علوم اجتماعی و اقتصادی دانشگاه الزهرا (س).

قهرمان‌لو، آزیتا (1385)، «محاسبه مقیاس معادل رفاهی در هزینه خانوار 2 و 3 نفره شهری ایران در سال 1381» پایان‌نامه کارشناسی ارشد، دانشکده علوم اجتماعی و اقتصادی دانشگاه الزهرا (س).

کریمی، سعید، راسخی، سعید و مجتبی احسانی (1388)، «بررسی تقاضای مواد غذایی مشمول یارانه، در مناطق شهری ایران با استفاده از مدل (AIDS) به‌منظور اولویت‌بندی تخصیص یارانه»، فصلنامه پژوهش‌های اقتصادی ایران، سال سیزدهم، شماره 39، 147- 166.

Banks, J. and R. Blundell and A. Lewbel (1997) “Quadratic Engel Curves and Consumer Demand”, Review of Economics and Statistics, 79, 527–39.

Blackorby, C. and D. Donaldson (1993) “Adult Equivalence Scales and the Economic Implementation of Interpersonal Comparison of Well-being”, Social Choice and Welfare, 10, 335-61.

Deaton, A. and J. Muellbauer (1980) “An Almost Ideal Demand System” The American Economic Review, Vol. 10, No. 3, 312-360.

Engel, E. (1895). “Die Lebenskosten Belgischer Arbeiter-Familien Früher und Jetz”. International Statistical Institute Bulletin, 9, 1–74.

Hindriks, Jean and Gareth D. Myles. (2006). Intermediate Public Economics, the MIT Press.

Jorgenson, Dale W. and Daniel T. Slesnik (1987) “Aggregate Consumer Behavior and Household Equivalence Scales”, Journal of Business and Economic Statistics, Vol. 5, No. 2, 219-231.

Lewbel, A. (1989), “Household Equivalence Scales and Welfare Comparisons”, Journal of Public Economics, No. 39, 377-91.

Lewbel, A. and k. Pendakur. (2006) “Equivalence Scales Entry for the New Palgrave Dictionary of Economics” 2^nd edition.

Mishra, A. and R. Ray (2011). “Prices, Inequality and Poverty: Methodology and Indian Evidence”, Review of Income and Wealth, Series 57, No. 3, 428-448.

Pendakur, Krishna. (1999). “Semi-Parametric Estimates and Tests of Base-Independent Equivalence Scales”, Journal of Econometrics, Vol. 88, Issue 1. 1-40.

Phipps Shelley and Thesia l. Garner (1994). “Are Equivalence Scales the Same for the United States and Canada?”, Review of Income and Wealth, Series 40, No. 1, 1-17.

Pollak, R. A. and T. J. Wales (1979). “Welfare Comparisons and Equivalence Scales”, American Economic Review, 69, 216-21.

Rahimi, Abolfazl and Hassan Molana (2015). “Relative Cost of Child Rearing for Iranian Households: Estimates of Child Equivalence Scales for Iran”, Quarterly Journal of Economics and Modelling, Shahid Beheshti University. 13-34.

Ray, R. (1983), “Measuring the Costs of Children: An Alternative Approach”, Journal of Public Economics, No. 22, 89–102.

Rothbarth, E. (1943). “Note on a Method of Determining Equivalent Income for Households of Different Composition. In C. Madge (ed.), War-Time Pattern of Savings and Expenditure”, Cambridge University Press, 123–30.

Stewart, Mark B. (2009). “The Estimation of Pensioner Equivalence Scale Using Subjective Data”, Review of Income and Wealth, Series 55, No. 4, 907-929.

Takeda, Yuka (2010). “Equivalence Scales for Measuring Poverty in Transitional Russia: Engel's Food Share Method and the Subjective Economic Well-being Method”, Applied Economic Letter, 17, 351-355.

Iranian Journal of Economic Research

Estimating Equivalence Scale for Iranian Rural Household

References

References

Volume 22, Issue 72 - Serial Number 72
October 2017
Pages 103-126

Estimating Equivalence Scale for Iranian Rural Household

References

References

Volume 22, Issue 72 - Serial Number 72October 2017Pages 103-126

Volume 22, Issue 72 - Serial Number 72
October 2017
Pages 103-126