This paper clarifies the conditions under which PIGLOG and extended PIGLOG preferences can identify household equivalence scales. The results are of interest to practitioners who have to elect preferences suitable for welfare analysis. It also shows that independent of the base utility equivalence scales are the same whether the budget shares of the demand systems are linear or quadratic in log income.

Can Piglog Preferences Identify Equivalence Scales?

PERALI, Carlo Federico
2007-01-01

Abstract

This paper clarifies the conditions under which PIGLOG and extended PIGLOG preferences can identify household equivalence scales. The results are of interest to practitioners who have to elect preferences suitable for welfare analysis. It also shows that independent of the base utility equivalence scales are the same whether the budget shares of the demand systems are linear or quadratic in log income.
2007
Piglog preferences; equivalence scales; independence of the base.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/321253
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