This article deals with the estimation of parametric equivalence scales for Italian households with different demographic characteristics: composition, location and number of employed members in the household. Using a sample of 43,701 observations on monthly current expenditures from 1997 to 2004 we estimate a demand system for ten goods and we tackle the problem of corner solutions for some goods adopting the Two Step estimator proposed by Shonkweiler and Yen (Am J Agric Econ 81:972-982, 1999). The consumption behavior of households is also analyzed calculating compensated, uncompensated and expenditure elasticites for each commodity. By considering households that differ in composition (number of children), geographic location (four-different macro-areas of Italy), and number of employed adults, we allow for a range of useful comparisons. © 2009 Springer Science+Business Media, LLC.
CITATION STYLE
Balli, F., & Tiezzi, S. (2010). Equivalence scales, the cost of children and household consumption patterns in Italy. Review of Economics of the Household, 8(4), 527–549. https://doi.org/10.1007/s11150-009-9068-3
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