Empirical versus policy equivalence scales: matching estimation

Properties of three types of equivalence scales obtained through the matching estimation are compared. They are derived by estimating the effect that demographic variables have on the household expenditures. The households are matched on common values of well-being covariates. Together with the earlier concept by Szulc (2009) two new types of covariates are examined: equivalent income − in this approach the scales minimise the deviation between the estimated and presumed values (solely empirical method), and covariates with imposed economy of scale on selected commodities (policy scales). The empirical part of the study is based on the Polish household budget survey data.