Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity (January 2003)
نویسنده
چکیده
In this paper, the equivalence scale elasticity will be estimated by using individual panel data on income satisfaction from the German Socio-Economic Panel Study (GSOEP). Satisfaction or happiness data have been more frequently used by economists in recent years to analyze individual well-being. The approach differs from other subjective approaches as respondents are requested to evaluate current income rather than income in hypothetical situations. The estimated scale elasticity is higher as compared to those from other subjective approaches based on German data. In addition, panel data enables different scale use by the respondents to be controlled. It can be shown, that elasticity decreases when unobserved fixed-effects are controlled for. JEL Classification: C23, D31, I31
منابع مشابه
Using Panel Data on Income Satisfaction to Estimate the Equivalence Scale Elasticity
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