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ARE EQUIVALENCE SCALES THE SAME FOR THE UNITED STATES AND CANADA?
Author(s) -
Phipps Shelley,
Garner Thesia I.
Publication year - 1994
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1994.tb00042.x
Subject(s) - microdata (statistics) , equivalence (formal languages) , econometrics , consumer expenditure survey , independent and identically distributed random variables , economics , statistics , sample (material) , estimation , mathematics , public economics , population , demography , sociology , aggregate expenditure , census , chemistry , management , discrete mathematics , chromatography , random variable
This research uses microdata from the 1986 Statistics Canada Family Expenditure Survey and from the 1986–88 U.S. Consumer Expenditure Survey to estimate equivalence scales using a methodology which is very similar to that employed by Statistics Canada for the estimation of Low‐Income Cutoffs. Employing identical sample selection criteria and identically specified models, we find that equivalence scales for the two countries are not, in general, statistically different when estimated in the same way. The larger issue is then whether the two countries should choose the same methodology for the estimation of equivalence scales.