Estimating Equivalence Scale for Iranian Rural Household

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 rela...

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Main Authors: Teimour Mohammadi, Ali Asghar Salem, Fatemeh Mir Mohammad Ali Tajrishi
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2017-09-01
Series:فصلنامه پژوهش‌های اقتصادی ایران
Subjects:
Online Access:https://ijer.atu.ac.ir/article_8293_5e28cae9e0c40614a3384c73cfa501cf.pdf
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author Teimour Mohammadi
Ali Asghar Salem
Fatemeh Mir Mohammad Ali Tajrishi
author_facet Teimour Mohammadi
Ali Asghar Salem
Fatemeh Mir Mohammad Ali Tajrishi
author_sort Teimour Mohammadi
collection DOAJ
description 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.
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spelling doaj.art-1a3ea6b7e8834301a4b754c4a42a3c792024-01-02T10:29:25ZfasAllameh Tabataba'i University Pressفصلنامه پژوهش‌های اقتصادی ایران1726-07282476-64452017-09-01227210312610.22054/ijer.2017.82938293Estimating Equivalence Scale for Iranian Rural HouseholdTeimour Mohammadi0Ali Asghar Salem1Fatemeh Mir Mohammad Ali Tajrishi2Assistant Professor, Allameh Tabataba'i University, Tehran, IranAssistant Professor, Allameh Tabataba'i University, Tehran, IranM.A. in Economics, Allameh Tabataba'i University, Tehran, IranEquivalence 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.https://ijer.atu.ac.ir/article_8293_5e28cae9e0c40614a3384c73cfa501cf.pdfquadratic almost ideal demand systemhousehold welfarerelative cost of a childnon-linear seemingly unrelated regressions
spellingShingle Teimour Mohammadi
Ali Asghar Salem
Fatemeh Mir Mohammad Ali Tajrishi
Estimating Equivalence Scale for Iranian Rural Household
فصلنامه پژوهش‌های اقتصادی ایران
quadratic almost ideal demand system
household welfare
relative cost of a child
non-linear seemingly unrelated regressions
title Estimating Equivalence Scale for Iranian Rural Household
title_full Estimating Equivalence Scale for Iranian Rural Household
title_fullStr Estimating Equivalence Scale for Iranian Rural Household
title_full_unstemmed Estimating Equivalence Scale for Iranian Rural Household
title_short Estimating Equivalence Scale for Iranian Rural Household
title_sort estimating equivalence scale for iranian rural household
topic quadratic almost ideal demand system
household welfare
relative cost of a child
non-linear seemingly unrelated regressions
url https://ijer.atu.ac.ir/article_8293_5e28cae9e0c40614a3384c73cfa501cf.pdf
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