Abstract
The interest in this chapter is no longer the behavioral content of commodity specific demographic functions, but an aggregate scaling function compiling all the commodity specific demographic effects. At the aggregate, information on households’ differential consumption behavior of goods and characteristics is lost. These aggregate scales represent a metric theoretically appropriate for interpersonal welfare comparisons. These scales have many potential applications in welfare analyses such as the design of tax policies and aid compensation schemes, the study of inequality and poverty, and the construction of a social welfare function. The distribution of incomes deflated by such scales provides a measure of inequality in the distribution of welfare across households (Lewbel 1989c and 1991a). Such scales are also important for inter-temporal comparisons of the same households whose saving and borrowing behavior over time is affected by price changes as well as changes in demographic characteristics (Pashardes 1991).
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
