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Estimation of Equivalence Scales Under Convertible Rationing
Author(s) -
KoohiKamali Feridoon
Publication year - 2013
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/roiw.12008
Subject(s) - coupon , econometrics , economics , convertible , imputation (statistics) , rationing , statistics , mathematics , missing data , health care , structural engineering , finance , engineering , economic growth
This paper provides estimates of equivalence scales based on three Quadratic Almost Ideal type models of the food share with coupon resale, and on their extended versions. A chief feature of the models is the method of dealing with infrequency of zero expenditure on coupon goods through imputation. The models are applied to an Iranian wartime budget survey. The results indicate little scope for measurement error. However, they also reveal a strong cross‐section price effect, which proves robust to a variety of checks. The effect of price heterogeneity proves critical in identification of the scale estimates, providing relatively rare empirical evidence consistent with the Base Independence ( BI ) hypothesis. The BI food share estimates of cost of children have plausible values.