Appendix A Additional tables
| Household size | Equivalence scales | ||||
|---|---|---|---|---|---|
| Per-capita income | "Oxford" scale ("Old OECD scale") | "OECD-modified" scale | Square root scale | Household income | |
| 1 adult | 1 | 1 | 1 | 1 | 1 |
| 2 adults | 2 | 1.7 | 1.5 | 1.4 | 1 |
| 2 adults, 1 child | 3 | 2.2 | 1.8 | 1.7 | 1 |
| 2 adults, 2 children | 4 | 2.7 | 2.1 | 2.0 | 1 |
| 2 adults, 3 children | 5 | 3.2 | 2.4 | 2.2 | 1 |
| Elasticity[37] | 1 | 0.73 | 0.53 | 0.50 | 0 |
Source: OECD: Adjusting Household Incomes: Equivalence Scales[38]
| Demographic dimension | Weight |
|---|---|
| Age of Primary Income Earner | 700 |
| Equivalised Household Disposable Income | 800 |
| Number of Children | 150 |
| Qualification | 75 |
| Household Ownership | 200 |
| Proportion of Other Govt exc WfF income | 200 |
| Proportion of Investment income | 200 |
| Proportion of Pension related income | 650 |
| Proportion of private income | 150 |
| Price changes (2006/07 to 2009/10) | |
|---|---|
| Food exc Restaurants (nd) | 14.59% |
| Restaurant (nd) | 11.82% |
| Alcoholic beverages (nd) | 8.96% |
| Cigarettes and tobacco (nd) | 10.75% |
| Clothing | 3.25% |
| Footwear | 0.51% |
| Actual rentals for housing | 6.39% |
| Purchase of housing | -1.20% |
| Materials for property alterations, additions and improvements (d) | 8.49% |
| Services for property alterations, additions and improvements | 8.79% |
| Property maintenance | 8.65% |
| Property rates and related services | 16.43% |
| Household energy (nd) | 14.07% |
| Furniture, furnishings and floor coverings (d) | -2.78% |
| Household textiles (d) | 2.55% |
| Household appliances (d) | 3.10% |
| Purchase of vehicles (d) | 5.60% |
| Petrol (nd) | 10.66% |
| Domestic air transport | -9.03% |
| International air transport | -3.05% |
| Telecommunication equipment (d) | -70.71% |
| Telecommunication services | -0.58% |
| Audio-visual and computing equipment (d) | -57.22% |
| Major recreational and cultural equipment (d) | 8.62% |
| Other recreational equipment and supplies | 6.79% |
| Recreational and cultural services | 7.19% |
| Newspapers, books and stationery (nd) | 13.04% |
| Accommodation services | 5.71% |
| Package holidays | 6.01% |
| Miscellaneous domestic holiday costs | 8.46% |
| Interest payments on personal loans | -6.33% |
| Interest payments on credit sales (hire purchases) | -6.33% |
| Health | 6.90% |
| Insurance | 12.60% |
| Other interest payments | -6.33% |
(d) - Durable (nd) - Non-durable
The "price" of mortgage payments were based on changes in the RBNZ effective mortgage rate
The large falls in Telecommunication and Audio-visual and computing equipment prices are owing to Statistics New Zealand adjusting the price changes in these items for quality improvements. Source: Statistics New Zealand (Consumers Price Index)
Notes
- [37] Using household size as the determinant, equivalence scales can be expressed though an "equivalence elasticity", ie the power by which economic needs change with household size. The equivalence elasticity can range from 0 (when unadjusted household disposable income is taken as the income measure) to 1 (when per capita household income is used); the smaller the value for this elasticity, the higher the assumed economies of scale inconsumption.
- [38] Available at www.oecd.org/dataoecd/61/52/35411111.pdf[accessed 23 May2012].
