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This analytical tool illustrates how to use subjective methods to derive equivalence scales. Different methods exist, but the focus will be on parametric methods. These methods are based on the definition of two broad sets of parameters. The first defines the degree of economies of scale within any given household; the second defines how much any further member adds to the cost of running a family. As we will see, the two concepts are linked, giving rise to a variety of ways to parameterise equivalence scales.

For further information, see also:

• Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series 004
• Equivalence Scales: General Aspects. EASYPol Series 032
• Equivalence Scales. Objective Methods. EASYPol Series 034

This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series' resources, go to the Policy Support and Governance website>Resources and type "EASYPol" in the free text search.