Parametric Equivalence Scales and Scale Relativities.

The authors respond to J. Banks and P. Johnson's (1994) comment on Coulter et al. (1992) drawing on a more general discussion of parametric equivalence scale and scale relativity issues and new empirical results. The authors show that criticisms of their earlier work are unfounded. When the McClements scale is properly characterized, the scale does indeed provide lower estimates of poverty and inequality levels than most other scales. The authors reiterate their conclusion that relationships between scale relativities and inequality and poverty indices may be index-specific. Moreover, the picture about distributional trends may differ from that about levels. Copyright 1994 by Royal Economic Society.