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Concept selected: Equivalence scales

Definition

The equivalence scales enable comparing expenditure (or income) between households with different sizes and compositions, based on the theories of the existence of equivalence scales and of equivalent consumption units.
According to the scale economy theory, the increase in the number of members of a household is not accompanied by a proportional increase in expenditure in order to preserve the same consumption pattern, given that there are shared expenses that are not proportional to the number of members (such as those of the dwelling).
In turn, the theory of equivalent consumption units in households sustains that the consumption patterns of children are different from those of adults.

Notes

For a given household, the consumption units of that household are calculated, according to the equivalence scales, with the most frequently used being the following:
1. OECD equivalence scale: this is calculated using the sum of the members of the house

Source

Household Budget Survey. Methodology

Topic

Statistical operations

(links to the Inventory of Statistical Operations)

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