7 research outputs found

    A note on Allen-Uzawa partial elasticities of substitution: the case of the translog cost function

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    This note provides a useful property of the Allen-Uzawa partials for the translog cost function. It also suggests how the main results extend to any functional form with certain properties. The curvature of the Allen-Uzawa matrix is the same as the curvature of the Hessian matrix. Intuitively and empirically, the Allen-Uzawa partials allow for the verification of curvature properties.

    Equivalence scales and inequality

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    At the heart of any distributional analysis there is the problem of allowing for differences in people's non-income characteristics. We examine the role of standard equivalence scales in distributional comparisons and the welfare implications of the basis for constructing equivalence scales. We consider the use of alternative approaches that do not require the specification of a single scale and implement one of these in practical comparison of Spain and the UK
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