Resource title

Using Panel Data on Income Satisfaction to Estimate the Equivalence Scale Elasticity

Resource image

image for OpenScout resource :: Using Panel Data on Income Satisfaction to Estimate the Equivalence Scale Elasticity

Resource description

In this paper a new method to estimate the equivalence scale elasticity using individual panel data on income satisfaction will be developed. In contrast to other subjective approaches, the present one benefits from the fact that no direct cardinal individual welfare function has to be specified. In addition, panel data enables different scale use by the respondents to be controlled. The approach gives straightforward evidence: Obviously there is an optimal elasticity at which people feel satisfied with their income.

Resource author

Johannes Schwarze

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21070

Resource license

Adapt according to the presented license agreement and reference the original author.