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COMPARISON OF ALTERNATIVE TAX AND TRANSFER TREATMENT OF CHILDREN USING ADULT EQUIVALENCE SCALES
Author(s) -
Lyssiotou Panayiota
Publication year - 1997
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.1475-4991.1997.tb00203.x
Subject(s) - equivalence (formal languages) , allowance (engineering) , economics , econometrics , context (archaeology) , ricardian equivalence , scale (ratio) , macroeconomics , mathematics , operations management , geography , archaeology , discrete mathematics , fiscal policy , cartography
This paper estimates adult equivalence scales in the context of a nonlinear demand system using cross‐section individual household data. It then evaluates the treatment of children under the tax allowance and child benefit systems on the basis of the estimated equivalence scales. The results suggest that a child benefit system allowing for economies of scale in the family is consistent with the cost of children implied by the notion of adult equivalence scale.