Concept selected: Equivalence scales
DefinitionThe 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.
NotesFor 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
SourceHousehold Budget Survey. Methodology
Statistical operations(enlaces al Inventario de Operaciones Estadísticas)
- Average expenditure per consumption unit
- National household final consumption expenditure (monetary and non-monetary)