Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123195
Authors: 
Dudel, Christian
Garbuszus, Jan Marvin
Ott, Notburga
Werding, Martin
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5568
Abstract: 
Most equivalence scales which are applied in research on poverty and inequality do not depend on income, although there is strong empirical evidence that equivalence scales in fact are income dependent. This paper explores the consistency of results derived from income independent and income dependent scales. It is shown that scales of both types inevitably lead to differing assessments of poverty and inequality under quite general conditions. German microdata will be used to demonstrate and illustrate our findings. Our results provide evidence that income independent scales should be replaced with income dependent equivalence scales.
Subjects: 
equivalence scales
independence of base
income dependence
JEL: 
C18
D10
I32
Document Type: 
Working Paper

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