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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Noncash Income, Equivalence Scales, and the Measurement of Economic Well-Being: Ores Working Paper Series Number 63

Noncash Income, Equivalence Scales, and the Measurement of Economic Well-Being: Ores Working Paper Series Number 63

Radner, Daniel B.

Paperback

General Political Science

Publisher Price: $17.75

ISBN10: 1289024685
ISBN13: 9781289024680
Publisher: Bibliogov
Published: Jun 26 2013
Pages: 64
Weight: 0.29
Height: 0.13 Width: 7.44 Depth: 9.69
Language: English
The economic well-being of subgroups of the population usually is measured by comparing resources and needs. The measure of resources often includes noncash income. Equivalence scales are used to adjust for differential needs. Little attention, however, has been paid to the desirability of consistency between the specifications of the resources and the equivalence scales in these comparisons. This exploratory paper suggests that a lack of consistency between the definitions used on the income and the needs sides can be important for the assessment of the economic well-being of subgroups when some types of noncash income are included in the definition of income. The measured economic status of the aged in the United States when Medicare noncash income is included in the definition of income is used as an example of this consistency problem. Some previous estimates have used equivalence scales that probably understated the relative needs of the aged by omitting needs associated with Medicare. The measured economic well-being of the aged relative to that of other age groups could be overestimated substantially as a result of this consistency problem. The basic problem is not confined to the treatment of Medicare or to the United States, but is much broader in nature.

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