Basic Needs (in)Security and Subjective Equivalence Scales

Abstract Equivalence scales are policy parameters for inequality measurement, tax deductions and subsidies. Thus, their accuracy is relevant both budgets social cohesion; however, measurement subject to debate regarding the underlying measure of welfare. Self-assessed insecurities in terms clothing, housing food—or basic needs—imply that at least some households lower levels welfare than those meeting needs. We use this determine increase total expenditure required meet needs, on average, thus we able calculate implied equivalence scales. compare these subjective ones arise from objective measures, such as shares same items. Our more consistent plausible across all goods, similar arising food shares. While either or clothing neither needs adequacy nor they plausible, given plausibility rules apply. Furthermore, smaller proposed OECD-modified scale.