The estimation of pensioner equivalence scales using subjective data
Stewart, Mark B. (2009) The estimation of pensioner equivalence scales using subjective data. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).
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This paper uses panel data on pensioners’ subjective evaluations of their financial positions to construct equivalence scales for pensioners. A pensioner couple is estimated to require an income 44% higher than a comparable single pensioner to reach the same standard of living. This is significantly less than the equivalence scale value implied by the ratio of state pension rates, the McClements equivalence scale value and the scale value derived from Engel curve estimation for food expenditure using the same data source. The estimated equivalence scale value is robust to variations in the definition of the pensioner sample, the measurement of income and the econometric model used.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HG Finance|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Retirement income, Pensions, Welfare economics, Social security|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||40|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|Adapted As:||Stewart, M.B. (2009). The estimation of pensioner equivalence scales using subjective data. Review of Income and Wealth, (forthcoming).|
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