Continuous Consumer Equivalence Scales

Name: Continuous Consumer Equivalence Scales
Author: J. Blokland

Item-specific effects of age and sex of household members in the budget allocation model

Paperback Engels 1976 9789024718474

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Costs of children as consumers is an issue as interesting and intriguing as it is intricate and tricky. It is interesting particularly because costs of children are often obscured, hence underestimated ('cheaper by the dozen'); more enlightened considerations may have an impact on family planning and population policy at a micro and macro level of living, respectively. From a methodological point of view, the topic is intriguing since consumption by individual members of a family cannot be measured directly, but can only be inferred to in an indirect way. Consequently, attempts at solving the children's cost problem were as frequent and diversified as they have been unsatisfactory or unsuccessful. One (older) approach to establishing costs of consumption by children compared with (male) adults was based on physiological considerations, viz. with respect to calorie requirements, and of a normative rather than an empirical nature: an international (League of Nations) consumer equivalence scale as well as our national (Amsterdam) scale were the results of these efforts. Unfortunately, this physiological myopia grossly underrates (young) children's consumption: the calories they use up may be small in number, but they are high in price. Moreover, not only their bodies, but also their gradually developing minds need (reading and other) matter, involving costs. A fortiori, this applies to women, who - as the biologically stronger sex - have been deemed to need less calories than men, disregarding their mental and other needs (after all, it is all a matter of mind over matter).

Specificaties

ISBN13:9789024718474

Taal:Engels

Bindwijze:paperback

Aantal pagina's:174

Uitgever:Springer US

Hoofdrubriek:Economie, Economie, Algemeen management

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Inhoudsopgave

1. Scope and method of the study.- 2. Earlier contributions to the estimation of family-size effects on expenditure.- 2.1. Possible contributions of survey data.- 2.2. Normative approach.- 2.3. Empirical approach.- 2.3.1. Subsampling households by size scales.- 2.3.2. Discontinuous scales.- 2.3.3. Continuous scales.- 2.4. Concluding remarks.- 3. The expenditure allocation model.- 3.1. Model without family size effects.- 3.1.1. Derivation.- 3.1.2. Some properties.- 3.2. Model incorporating family size effects.- 3.2.1. Derivation.- 3.2.2. Some properties.- 3.2.3. Specification of the standard consumer function.- 3.2.4. Specification of the equivalence function.- 3.2.5. Some properties of the equivalence function.- Appendix 3.A. Derivation of homogeneous demand functions from the Slutsky conditions imposed on the expenditure allocation model.- Appendix 3.B. Conditions for a budget constrained utility maximum imposed on the expenditure allocation model without family size effects.- Appendix 3.C. Conditions for a contrained utility maximum imposed on the expenditure allocation model incorporating family size effects.- Appendix 3.D. Derivation of parameter equations for the standard consumer functions.- 4. Estimation of family size effects in the expenditure allocation model.- 4.1. Model with direct identification of the parameters.- 4.1.1. Specification of the model.- 4.1.2. Disturbances of the model.- 4.2. Model with indirect identification of the parameters.- 4.2.1. Specification of the model.- 4.2.2. Identification of the parameters.- 4.2.3. Application of the model.- 5. Results of the indirect estimation procedure.- 5.1. Survey.- 5.2. Allocation of the total budgets to three large categories.- 5.3. Allocation of the food budget to seven categories.- 5.3.1. Four specifications of the cubic equivalence function.- 5.3.2. Two subsamples: small and large families.- 5.3.3. Two subsamples: high and low total expenditure.- 5.3.4. The effect of enlarging the admitted range of the equivalence coefficients.- 5.4. Comparison between the present results and those of Prais and Houthakker.- 5.5. Comparison between the present results and the results obtained with some ‘naive’ models.- 5.5.1. Introduction.- 5.5.2. First naive model: without family size effects.- 5.5.3. Second naive model: number of family members.- 5.5.4. Third naive model: number of standard consumers.- 6. Summary.- Annexes.- Selected Bibliography.