This paper identifies flexible scales from two cross sections of FES data capturing the distributional effects of inflation. Poverty rates based on the flexible and simple (per capita, modified OECD) deflators reveal different trends in poverty among households and children.

We evaluate the role of functional form of demographics in demand analysis by proposing the GQL ‘unstructured’ demographically transformed model which nests the Barten–Gorman demographically modified model and popular rank-3 and rank-2 demand systems. We use UK individual data and find...

The effects of free of charge state education on income distribution are often studied by allocating government education outlays to households, assuming that these outlays equal the benefit which households attach to state schooling. This paper proposes a demand analysis approach to estimating...

By means of an extensive Monte Carlo simulation study based on the design of Chen and Hong (2012) we compare the performance of the tests they proposed for parameter stability with the linearity test of Li et al. (2002) and the functional form test of Li and Wang (1998). We find that the test...

We propose an empirical likelihood-based method of inference for comparing inequality between two populations. A series of Monte Carlo experiments are used to assess our method’s finite sample performance. We illustrate our approach using some Canadian household income data.