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Equivalence scales are often used to adjust household income for differences in characteristics that affect needs. For example, a family of two is assumed to need more income than a single person, but not double due to economies of scale in consumption. However, in comparing economic well-being...
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economies of scale are understated (as is the case when using the 'square root of household size'), the relative poverty …
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poverty among the elderly. The model focuses on individual preferences, a consumption technology that captures the economies … scale and a wife's share that is increasing in total expenditures. We further calculated poverty rates by means of the … collective consumption model. Collective poverty rates of widows and widowers turn out to be slightly lower than traditional ones …
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