Independent of a Base Equivalence Scales Estimation Using United States Micro-Level Data

Problems of identification of equivalence scales, on both philosophical and mathematical grounds, are discussed. Scales are estimated using an Almost Ideal Demand System and data from the 1980's United States Consumer Expenditure Survey. Resulting parameter estimates are reasonable for income and demographic effects, but the estimated price elasticities and the scales themselves are less appealing and less robust, especially since the validity of the scale estimates depends on strong assumptions about functional form.