Estimating household resource shares: A shrinkage approach

Denni Tommasi and Alexander Wolf

Economics Letters, 2018, vol. 163, issue C, 75-78

Abstract: Collective models identifying resource shares are promising tools to analyze intra-household welfare and poverty. However, their empirical application has proven difficult in practice as authors contend with large standard errors and unstable estimates. This paper uses a prominent framework to show how a common feature of the structure of these models makes the task so difficult and proposes an empirical strategy to stabilize the estimates.

Keywords: Collective model; Sharing rule; Resource shares; Demand system; Engel curves; Shrinkage (search for similar items in EconPapers)
JEL-codes: C31 D11 D12 D13 I32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:163:y:2018:i:c:p:75-78

DOI: 10.1016/j.econlet.2017.11.030

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