Market Basket Measure research paper: An analysis of the equivalization method

Description: This discussion paper begins by providing the reasons for why equivalization methods are used. Following this, the square root scale is described and the motivations for using the square root scale are discussed. Third, a series of new tests are conducted to evaluate the efficiency of the square root scale, and these results are discussed in some detail as they reveal many insights. The final section of the paper raises considerations for creating Market Basket Measure (MBM) thresholds for different types of families, such as unattached individuals and those including seniors or persons with disabilities.

The paper also provides an opportunity for the public and stakeholders to share feedback and comments in measuring poverty by different family characteristics in Canada.

Issue Number: 2024004

Frequency: Occasional