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The welfare interpretation of consumer equivalence scales

Bradbury, Bruce


A consumer equivalence scale is a price index that shows the relative household expenditures required in households of different sizes so as to reach some common living standard. These scales typically increase with the number of people in the household, that at less than a per-capita rate due to the existence of joint consumption within the household (and the lower needs of children). <P> However, if household composition is considered as a matter of choice rather than exogenously given, then...[Show more]

CollectionsANU Research Publications
Date published: 2001
Type: Working/Technical Paper


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