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.
Authors
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Alexander Wolf
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
FNRS Graduate Fellow, ECARES, Université libre de Bruxelles & Visiting Fellow at Boston College ECARES, Université libre de Bruxelles & Boston College
Journal article details
- DOI
- 10.1016/j.econlet.2017.11.030
- Publisher
- Elsevier
- JEL
- D13, D11, D12, C31, I32
- Issue
- Volume 163, March 2018, pages 75-78
Suggested citation
Tommasi, D and Wolf, A. (2018). 'Estimating household resource shares: A shrinkage approach' 163(2018), pp.75–78.
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