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Quality & Quantity

, Volume 51, Issue 3, pp 1197–1205 | Cite as

Quantifying the economic cost of children: a note on intertemporal equivalence scales

  • Gianni BettiEmail author
Article
  • 171 Downloads

Abstract

Static economic models based on complete demand systems are inadequate for estimating unconditional equivalence scales; in order to capture the effects of demographic changes on consumer behaviour, a life-cycle dynamic model is taken into account. In literature, studies have presented and evaluated longitudinal equivalence scales and intertemporal cost of children but these cannot be applied in practice when equivalence scales are utilised in poverty or income distribution analyses. This paper proposes intratemporal equivalent income scales, which are within period index numbers incorporating intertemporal consumer behaviour.

Keywords

Intertemporal equivalence scales Cost of children Complete demand systems Life-cycle models 

JEL Classification

D12 J13 C33 

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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  1. 1.Department of Economics and StatisticsUniversity of SienaSienaItaly

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