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
Alexander Wolf
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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