Identification of unobserved distribution factors and preferences in the collective household model

Stefan Hubner

Journal of Econometrics, 2023, vol. 234, issue 1, 301-326

Abstract: This paper develops a non-parametric collective random utility model with a continuous choice of consumption and sharing. We allow for a heterogeneous population by introducing unobserved distribution factors and preferences that are non-separable in the stochastic household choice system. We provide necessary and sufficient conditions for invertibility with respect to the vector of unobserved heterogeneity. Further, we show non-parametric identification of each individual’s idiosyncratic preferences and Pareto weights from the distribution of observed choices. Based on this result we develop a non-parametric two-step estimation procedure and estimate individual counterfactuals in a collective labour supply model for households with children using the LISS panel.

Keywords: Identification; Nonparametric; Collective household model; Random utility; Unobserved heterogeneity; Invertibility; Individual counterfactuals (search for similar items in EconPapers)
JEL-codes: C21 C31 D12 D13 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:234:y:2023:i:1:p:301-326

DOI: 10.1016/j.jeconom.2022.01.004

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