STOCHASTIC EQUIVALENCE SCALES IN LOG-NORMAL DISTRIBUTIONS OF EXPENDITURES Cover Image

STOCHASTIC EQUIVALENCE SCALES IN LOG-NORMAL DISTRIBUTIONS OF EXPENDITURES
STOCHASTIC EQUIVALENCE SCALES IN LOG-NORMAL DISTRIBUTIONS OF EXPENDITURES

Author(s): Stanisław Maciej Kot
Subject(s): Economy
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: equivalence scales expenditure distributions; log-normal distribution

Summary/Abstract: In the paper, the properties of the stochastic equivalence scales (SES) are analysed when expenditure distributions are log-normal. The SES provides the equivalent distribution of expenditures when the population of households is heterogeneous with respect to such attributes as household size, demographic composition, etc. For log-normal expenditure distributions, the non-parametric SES deflators are proportional to the ration of geometric means in compared distributions. The statistical analysis of expenditure distributions for Poland in the years 2005-2010 shows that these deflators perform quite well.

  • Issue Year: XIV/2013
  • Issue No: 1
  • Page Range: 276-282
  • Page Count: 7
  • Language: English
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