Equivalence Scales and Taxation: A Simulation Analysis

  • John Muellbauer
  • Justin van de Ven
Part of the Contributions to Statistics book series (CONTRIB.STAT.)


What constitutes the appropriate adjustment for non-income differences between families? This is a fundamental question that underlies many studies of redistributive equity; and yet, despite a considerable research effort, a generally agreed solution has remained elusive. Elsewhere (Muellbauer and van de Ven, 2002), we have attempted to address this problem by considering the equivalence scales that are implicit in transfer policy. In this paper we expand upon our earlier discussion, by considering the generality of the equivalence scale framework as it relates to tax and benefit systems, and by using simulated data to explore our suggested methods for estimation.


Equivalence Scale Transfer System Benefit System Reference Unit Transfer Policy 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • John Muellbauer
    • 1
  • Justin van de Ven
    • 1
    • 2
  1. 1.The University of OxfordUK
  2. 2.National Institute of Economic and Social ResearchLondonUK

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