Subjective minimum income (MIQ) and minimum spending (MSQ) are the study focus. Basic Needs Module (1995) data from the U.S. Survey of Income and Program Participation are analyzed. A regression intersection approach is used to estimate household thresholds. MIQ thresholds are higher than MSQ thresholds. Both are higher than U.S. official poverty thresholds, and thresholds based on a National Academy of Sciences (NAS) methodology. Subjective threshold-based equivalence scales imply greater economies of scale than those in the other two measures but are similar to behavioral scales. This finding suggests that families make trade-offs to meet their minimum needs.
Garner, T. and Short, K. (2003), "10. Personal assessments of minimum income and expenses: What do they tell us about ‘minimum living’ thresholds and equivalence scales?", Inequality, Welfare and Poverty: Theory and Measurement (Research on Economic Inequality, Vol. 9), Emerald Group Publishing Limited, Bingley, pp. 191-243. https://doi.org/10.1016/S1049-2585(03)09011-2Download as .RIS
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