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Adult Equivalence Scales, Inequality and Poverty in New Zealand - WP 04/21

Publication Details

  • Adult Equivalence Scales, Inequality and Poverty in New Zealand
  • Published: Sep 2004
  • Status: Current
  • Authors: Creedy, John; Sleeman, Catherine
  • JEL Classification: D31; D63; H23; I31; I32
  • Hard copy: Available in HTML and PDF formats only.
 

Adult Equivalence Scales, Inequality and Poverty in New Zealand

New Zealand Treasury Working Paper 04/21

June 2004

John Creedy and Catherine Sleeman

Abstract

This paper examines the sensitivity of inequality and poverty measures to the choice of adult equivalence scales and the type of income unit examined. Comparisons are made using parametric equivalence scales, and income units include individuals, equivalent adults and households. The results are based on HES data for total expenditure. A variety of equivalence scales, for New Zealand, Australia, the UK and the OECD are examined. The implications of varying the poverty line are also considered.

Table of Contents

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Abstract

Table of Contents

List of Tables

List of Figures

1 Introduction

2 Alternative Concepts and Measures

3 Empirical Analysis for New Zealand

4 Equivalence Scales and Direct Taxation

5 Alternative Equivalence Scales

6 Conclusions

Appendix: Covariance Between Adult Equivalent Income and Number of Persons

References

twp04-21.pdf (664 KB) pp. 37

List of Tables

List of Figures

Inequality Sensitivity – Unit of Analysis: Individual

  • 1   
  • 2   
  • 3   

Inequality Sensitivity – Unit of Analysis: Equivalent Adult

  • 4   
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7 Correlation Between Equivalent Income, and Household Size,

8 Inequality Measures, and

Poverty Sensitivity – Unit of Analysis: Individual, Poverty Measure:

  • 9   
  • 10   
  • 11  
  • 12  

Poverty Sensitivity – Unit of Analysis: Individual, Poverty Measure:

  • 13  
  • 14   
  • 15   
  • 16   

Poverty Sensitivity – Unit of Analysis: Child, Poverty Measure:

  • 17  
  • 18  
  • 19  
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Poverty Sensitivity – Unit of Analysis: Child, Poverty Measure:

  • 21   
  • 22  
  • 23   
  • 24   

25 Behaviour of the Frequency Distribution of Equivalent Income, When is Increased over Low Values

26 Behaviour of the Frequency Distribution of Equivalent Income, When is Increased over High Values

27 Poverty Measures, , and

28 Reranking with Individuals as the Income Unit

29 Reranking with Equivalent Adults as the Income Unit

30 Inequality, Unit of Analysis: Equivalent Adult,

31 Poverty - , Unit of Analysis: Individual, 26

Disclaimer

The views, opinions, findings, and conclusions or recommendations expressed in this Working Paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury. The New Zealand Treasury takes no responsibility for any errors or omissions in, or for the correctness of, the information contained in this Working Paper. The paper is presented not as policy, but to inform and stimulate wider debate.

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