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Research Paper Working Papers of the ESRC Research Centre on Micro-Social Change 98-11

Intertemporal equivalence scales and cost of children using BHPS


Publication date

01 Nov 1998


Static economic models based on complete demand systems are inadequate for estimating unconditional equivalence scales; in order to capture the effects of demographic changes on consumer behaviour, a life-cycle dynamic model is taken into account. Recent studies have presented and evaluated longitudinal equivalence scales and intertemporal cost of children which cannot be applied in practice when equivalence scales are utilised in poverty or income distribution analyses. This paper presents intratemporal equivalent income scales, which are within period index numbers incorporating intertemporal consumer behaviour.


Statistical Analysis, Households, Welfare Benefits, and Income Dynamics


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