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Equivalence scales with endogeneity and base independence

Author

Listed:
  • Steven F. Koch
Abstract
This study estimates food budget share equations to calculate household equivalence scales that address both base-independence and potential endogeneity, even though an instrument that satisfies the usual exclusion restriction may not be available. The application incorporates semi-parametric methods, control functions and heteroscedasticity instrumentation. The application is founded on the most recent income and expenditure data […]

Suggested Citation

  • Steven F. Koch, 2022. "Equivalence scales with endogeneity and base independence," Working Papers 874, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:874
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    References listed on IDEAS

    as
    1. Steven F Koch & Naomi Setshegetso, 2020. "Catastrophic health expenditures arising from out-of-pocket payments: Evidence from South African income and expenditure surveys," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-14, August.
    2. Gauthier Tshiswaka-Kashalala & Steven F Koch, 2018. "The Demand for Reproductive Health Care," Journal of African Economies, Centre for the Study of African Economies, vol. 27(4), pages 405-429.
    3. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    4. Guido W. Imbens & Whitney K. Newey, 2009. "Identification and Estimation of Triangular Simultaneous Equations Models Without Additivity," Econometrica, Econometric Society, vol. 77(5), pages 1481-1512, September.
    5. Jorge M. Aguero & Michael R. Carter & Ingrid Woolard, 2006. "The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support Grant," SALDRU Working Papers 8, Southern Africa Labour and Development Research Unit, University of Cape Town.
    6. Munoz Boudet,Ana Maria & Buitrago,Paola & Leroy De La Briere,Benedicte & Newhouse,David Locke & Rubiano Matulevich,Eliana Carolina & Scott,Kinnon & Suarez Becerra,Pablo, 2018. "Gender differences in poverty and household composition through the life-cycle : a global perspective," Policy Research Working Paper Series 8360, The World Bank.
    7. Eric V. Edmonds & Kristin Mammen & Douglas L. Miller, 2005. "Rearranging the Family?: Income Support and Elderly Living Arrangements in a Low-Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    8. Ye, Yuxiang & Koch, Steven F., 2021. "Measuring energy poverty in South Africa based on household required energy consumption," Energy Economics, Elsevier, vol. 103(C).
    9. Ingrid Woolard & Murray Leibbrandt, 1999. "Measuring Poverty in South Africa," Working Papers 99033, University of Cape Town, Development Policy Research Unit.
    10. Munoz Boudet,Ana Maria & Bhatt,Antra & Azcona,Ginette & Yoo,Jayne Jungsun & Beegle,Kathleen G., 2021. "A Global View of Poverty, Gender, and Household Composition," Policy Research Working Paper Series 9553, The World Bank.
    11. Dorrit Posel & Daniela Casale & Erofili Grapsa, 2016. "Re-estimating gender differences in income in South Africa: The implications of equivalence scales," Development Southern Africa, Taylor & Francis Journals, vol. 33(4), pages 425-441, July.
    12. Kseniya Abanokova & Hai-Anh H. Dang & Michael M. Lokshin, 2020. "The Important Role of Equivalence Scales: Household Size, Composition, and Poverty Dynamics in the Russian Federation," Working Papers 539, ECINEQ, Society for the Study of Economic Inequality.
    13. Hayfield, Tristen & Racine, Jeffrey S., 2008. "Nonparametric Econometrics: The np Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i05).
    14. Donaldson, David & Pendakur, Krishna, 2006. "The Identification of Fixed Costs From Consumer Behavior," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 255-265, July.
    15. Angela Daley & Thesia Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across countries and time in household expenditure patterns: implications for the estimation of equivalence scales," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 734-757, November.
    16. J. L. Nicholson, 1976. "Appraisal Of Different Methods Of Estimating Equivalence Scales And Their Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 22(1), pages 1-11, March.
    17. Margaret Grosh & Paul Glewwe, 2000. "Designing Household Survey Questionnaires for Developing Countries," World Bank Publications - Books, The World Bank Group, number 25338.
    18. Dong, Yingying, 2010. "Endogenous regressor binary choice models without instruments, with an application to migration," Economics Letters, Elsevier, vol. 107(1), pages 33-35, April.
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    20. Syed Abul Hasan, 2016. "Engel curves and equivalence scales for Bangladesh," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 301-315, April.
    21. repec:bla:revinw:v:44:y:1998:i:4:p:565-69 is not listed on IDEAS
    22. Ataguba, John Ele-Ojo, 2012. "Reassessing catastrophic health-care payments with a Nigerian case study," Health Economics, Policy and Law, Cambridge University Press, vol. 7(3), pages 309-326, July.
    23. Murray Leibbrandt & Ingrid Woolard & Arden Finn & Jonathan Argent, 2010. "Trends in South African Income Distribution and Poverty since the Fall of Apartheid," OECD Social, Employment and Migration Working Papers 101, OECD Publishing.
    24. Yatchew, Adonis & Sun, Yiguo & Deri, Catherine, 2003. "Efficient Estimation of Semiparametric Equivalence Scales with Evidence from South Africa," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 247-257, April.
    25. Rolf Aaberge & Ingrid Melby, 1998. "The Sensitivity Of Income Inequality To Choice Of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 565-569, December.
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    1. Ahunov, Muzaffarjon & Kakhkharov, Jakhongir & Mozumder, Pallab, 2022. "Income and household energy consumption in a transition economy: The case of Uzbekistan," Energy, Elsevier, vol. 254(PA).

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    More about this item

    Keywords

    econometric modelling; Macroeconomic Models; Other Macroeconomic Variables; Quantitative Methods;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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